RELATIONS WITH THE ENVIRONMENT ENVIRONMENTAL SUSTAINABILITY AND THE PRIMARY CHALLENGES The main challenges for environmental sustainability dealt with by both for preserving water resources and for the circular economy. Acea during the year are included in the framework outlined in the Acea has been investing in the circular economy for some years 2030 Agenda and focus on a few key issues, including climate, now, with the aim of both reducing waste of resources, for exam- water resources, circular economy and technological innovation ple by using process waste, and obtaining energy recovery. This applied to infrastructure management. commitment was reinforced by the signing of a Memorandum of With regard to climate change, the Group is undertaking initia- Understanding with Enea for the joint development of projects in tives aimed on the one hand at the process of adaptation to these the circular economy, with regard to the sustainable waste cycle changes, for example, by making infrastructure more resilient and and water resource management (see also the chapter Institutions incorporating the analysis of critical scenarios into operations, and and the company). on the other hand at the mitigation process through the progres- Also this year Acea contributed to the pursuit of some of the sive reduction of climate-changing emissions. In 2019 it continued objectives set by the four European Directives of the “Circular the path towards the implementation of a system consistent with Economy Package”. Indeed, at Ecomondo Acea Elabori, Acea the UNI EN ISO 14064 standard (on the inventory of greenhouse Ambiente and Acea Ato 2 presented some projects aimed at the gases), which enables a more accurate analysis and knowledge of development of diffused composting, the reuse of water, the re- emissions generated by plants, and achieved positive results on the covery of matter in urban purification plants and the reduction of CDP- Carbon Disclosure Project Questionnaire for which Acea sludge (see the box for details). improved its score, obtaining an A- (see also the box in the Corpo- Promoting a circular economy also requires the best possible man- rate Identity chapter Strategy and sustainability). agement of water including through the use of water kiosks, see in With regard to the management of water, in agreement with the in- this regard the chapter Customers and the community. stitutions of reference Acea continued the actions necessary for the With regard to technological innovation particular attention is paid construction of the new upper section of the Peschiera-Le Capore to applications that concern the management of networks and Aqueduct to safeguard the water supply in Rome and the Province of their evolution (see also Corporate Identity and the Institutions and Rome. In addition, the wastewater reuse project continues, important the company chapter).

ACEA AT ECOMONDO

Acea once again this year participated in Ecomondo, the most impor- In addition, the Chairwoman of Acea addressed the international tant international trade show of sustainable development in the Eu- plenary session of the General Assembly of Ecomondo entitled ro-Mediterranean area held in Rimini with an innovative format that “Climate and Green New Deal: a compact between companies brought together the sectors of the circular economy referring to the and governments”. recovery of matter and energy, and the sustainable management of The booth set up by Acea, visited by many and also by the Minister of water resources. The topics covered during the event were “waste and the Environment, proposed several activities engaging visitors, inclu- resources”, “circular bioeconomy”, “reclamation and hydrogeological ding an educational presentation on the water cycle for boys and girls risk” and “water”, with a focus on the most advanced and sustainable of school age, practical demonstrations on chemical analyses and water technological solutions for the correct management and leveraging of controls, a social activation on the importance of the reuse of objects resources (types of waste, water, polluted marine sites and raw, second thanks to creative restyling. In addition, experts in the scientific and en- and renewable materials). vironmental field have given advice on the conduct needed in everyday Acea presented some projects focused on the circular and green eco- life to help improve the quality of the environment, by recycling plastic nomy such as Acea SmartComp for local composting (for more infor- or reducing its consumption. mation see also the box in the chapter Environment – waste manage- Acea also presented the AIRES network contract: A network of com- ment), Sludge Mining for the recovery of fertilizers and biofuels from panies, institutions and technology consortia engaged in the develop- sewerage sludge and Water Kiosks, and shared , testimonies shared in ment of a circular economy and environmental sustainability (see also the topical seminars and interviews by project managers. the chapter Institutions and the company).

172 ACEA GROUP / SUSTAINABILITY REPORT 2019 ENVIRONMENTAL AND The commitment of the operating companies to keep manage- ment of environmental issues efficient is very high. Nonetheless, CLIMATE RISKS: IN-DEPTH situations can occur – usually provoked by contingent circum- ANALYSIS AND DISCLOSURE stances – that generate non-conformities that may be questioned by the competent control bodies. CLIMATE RISKS During the year the main operating companies of the group re- Climate change is one of the most important environmental and ceived about 60 environmental fines, with the consequent pay- social challenges, both internationally – as evidenced by the Paris ment of about € 64,500. An additional 144 environmental dis- Climate Agreement and the long-term European strategy “for a putes are currently being settled. prosperous, modern and climate-neutral economy by 2050 – A The Aprilia plant, seized in 2017 by the Latina Public Prosecutor’s clean planet for all” and the recent Green Deal promoted by the Office for aspects related to odorous emissions, in 2019 operated European Commission – and nationally, as indicated in the Inte- close to full capacity, although all activities were subject to daily grated Energy and Climate Plan (IECP), which shares the Com- control by a judicial custodian99. munity’s orientation aimed at strengthening the commitment to decarbonisation of the economy. The majority of the water Companies of the Group – such as Acea In 2019, the Climate Action Summit was held in New York, an Ato 2, Acea Ato 5, Gesesa – and the Companies of the Environ- important event organized by the United Nations with the dual ment Segment) receive environmental reports principally from the objective of stimulating countries to achieve the objectives of the Control Bodies or other Relevant Bodies, called upon by individual Paris Agreement and encouraging concrete actions in support of citizens. The Bodies, therefore, act autonomously with checks on these objectives in the real economy. site and, at times, they initiate proceedings and impose penalties, as In this context, consistent with international, European and na- mentioned above. Complaints/reports submitted by the Bodies on tional orientations, Acea has strengthened its mitigation and ad- environmental issues of a certain importance are forwarded to the aptation strategy with respect to climate change with concrete responsible office, which asks those involved to provide information actions, including energy efficiency for companies and, in the wa- on the problem that is the subject of the complaint in order to as- ter sector, the reuse of purified wastewater in agriculture or the certain what has been reported and request the necessary action, as production of drinking water from the Tiber in cases of emergency well as provide feedback to the Bodies concerned. Exceptionally, it (see the 2019-2022 Sustainability Plan and the operational objectives may happen that the Company receives significant reports from in- in Corporate Identity). dividual persons; in this case they will be checked and, where needed, Furthermore, in line with the provisions of the Task Force on it will intervene to resolve them. Climate-Related Financial Disclosures (TCFD), Acea assesses With respect to electricity distribution, Areti can receive observa- climate risks by breaking them down into physical and transition tions regarding alleged environmental damage in the case of build- risks (see also Corporate identity chapter Corporate Governance ings housing electrical plants. However, this concerns installations and Management Systems) and reports them in the aforemen- indispensable for the correct exercise of the electricity distribu- tioned CDP. Acea is increasingly working to align itself with the tion network, created by Areti following authorisations granted by recommendations of the TCFD by progressively including the Bodies which are custodians of the land and therefore fully compli- consideration of climate risks in economic and financial reporting. ant with the legislation of reference, including both town planning Through targeted initiatives such as the increase in produc- and environmental legislation100. The Assets and Special Projects tion from renewable energy sources98, the Group has the dual Unit, which protects the company’s assets, receives the notes of objective of achieving high efficiency both in internal energy dispute from the owners of the immoveable properties that host end-uses and in process uses and reducing carbon intensity transformer substations or are adjacent to power lines, and subse-

(gCO2/kWh produced). The results obtained to date are shown quently the Occupational Safety Unit carries out the instrumental in table no. 59 on energy intensity indices and table no. 65 on checks in response to the disputes. During 2019 6 environmental emission intensity indices. checks were processed and closed with a positive outcome con- cerning electromagnetic fields and transformer substations.

THE MANAGEMENT AND CONTROL OF ENVIRONMENTAL MANAGEMENT ACTIVITY WITH ENVIRONMENTAL IMPACTS The Group monitors the processes which have the potential ca- The Management Systems integrated and certified according to pacity to generate environmental impacts and in particular the the UNI EN ISO standards are implemented, or in the process of activities which necessitate the use, or envisage the presence in implementation in the majority by the company (see the chapter installations, of materials which are intrinsically dangerous, such as Corporate governance and management systems in Corporate Iden- for example sulphur hexafluoride, radon and dielectric oil. tity). The parent company itself has an Integrated Management With regard to the latter, in particular, in 2019 Areti continued its System with Quality, Environment, Safety and Energy compo- experimentation with vegetable oil, launched some years ago. In- nents that facilitates environmental compliance, and a Sustaina- deed, dielectric oil is a substance used as an insulating and cooling bility Policy and QASE System that guides the Group’s approach fluid in power transformers, which has advantageous technologi- to respecting and protecting the environment, also in line with the cal characteristics and also some environmental issues related to principles set out in the Code of Ethics. its chemical nature as a derivative of petroleum. The experiment is based on the use of an insulating liquid of vegetable origin

98 More specifically, in 2019 Acea Produzione purchased some photovoltaic systems for 26 MW of power. 99 The Aprilia plant was placed under seizure in 2017, for aspects related to odorous emissions. On 14 April 2018 the Public Prosecutor authorized the resumption of operations by removing the seals from the Aprilia plant, without prejudice to the seizure. In 2019 the plant operated close to full capacity, although all activities were subject to daily control by a judicial custodian. 100 In this case, the environmental regulatory reference is D.P.C.M. of 8 July 2003.

RELATIONS WITH THE ENVIRONMENT 173 (natural esters), which has electrical and physical characteristics it project, which broadcasts images of a nest situated on Acea similar to oil of a mineral origin, but the significant advantages of infrastructure (www.birdcam.it). a higher temperature of flammability and a total biodegradability Acea Ato 2 also monitors the areas surrounding the largest and reusability at the end of its life. The ongoing experiments, treatment plants in Rome. The results of the analyses carried having the precautionary aim of maximising confidence with this out at the purification plant in Rome Nord have shown that new product by minimising any risks and/or defects connected the plant constitutes a synanthropic biodiversity hotspot, i.e. with its use, concerns three MV/LV transformers designed and a place where species that coexist or are learning to coexist built for this purpose (two with 400 kVA power and the third with humans through mechanisms of evolution and natural se- with 630 kVA power put into operation in 2015). lection tend to form a rich and stable ecological community. Indeed, the specific ecological conditions combined with the low impact of man-made structures facilitates the presence of an extremely particular wildlife community. PROTECTION OF Acea Produzione manages the water basins of hydroelectric THE TERRITORY plants and provides for the protection of the habitats of all species present in these areas in order to mitigate the effect Acea pays attention to the protection of the territory region of the artificial barrier of the dams, which interferes with the and the safeguarding of biodiversity. The protection of eco- natural migration of fish and the gradual sedimentation of the systems is contemplated in the procedures of the Environ- riverbed, with consequent variation of the native flora of the mental Management Systems, in the context of the design banks. In addition, the Company’s protection of the afore- and construction of plants, as well as in the management of the mentioned basins ensures the living conditions of the “settled” relevant areas. Moreover, as required by the Authorisations of and “migratory” birds, which use these sites for reproduction/ existing plants and every time an Integrated Environmental feeding even during migration. Authorisation (IEA) is renewed for a plant, this is managed by Finally, in order to limit the potential impacts of overhead protecting the flora and fauna and protecting the environment infrastructure for the distribution of HV and MV electricity and the landscape in which the plant is located. The main ac- on birds, Areti employs risk mitigation initiatives in collab- tivities of the Group Companies that may have an impact on oration with the relevant authorities, making use of the best biodiversity are primarily attributable to the management of technological solutions for problems that are likely to occur water sources, the operation of electricity production systems in sensitive areas or areas of particular naturalistic value. In (hydroelectric, thermoelectric and waste to energy), the dis- particular, through the Memorandum of Understanding for tribution of electricity and the treatment of waste. the rearrangement of the electricity grids signed by Areti, In 2019, in order to verify the presence of species listed in the Terna and the Municipality of Roma Capitale in 2007, in- red list (IUCN) and in the national lists of protected species terventions have been planned to dismantle and demolish in the areas of operation, Acea carried out a specific inves- tens of kilometres of overhead power lines within very im- tigation that involved the verification of the location of the portant areas subject to protection, such as: Veio Park, the Group’s main plants within the following types of protected Marcigliana Nature Reserve and, to the south of Rome, the areas: Sites of Community Interest (SCIs), Special Protection Decima Malafe Nature Reserve and the Roman Coast Na- Areas (SPAs) covered by the Natura 2000 network and other ture Reserve. For details of the interventions carried out areas of biodiversity value, such as protected parks. In addition in 2019, please refer to the Memorandum of Understanding to the progressive extension of the analyses to all Group com- for the rearrangement of the electricity grids in the section panies, Acea intends to continue this investigation, verifying Energy distribution. the presence of protected species in the areas of interest and the possible contact between them and the operations of the SPRINGS AND PROTECTED AREAS Companies. The surveys carried out in 2019 found no Acea Through the Companies Acea Ato 2, Acea Ato 5, Gori and Ge- Ambiente plants (thermal renewal and composting) or Acea sesa, the Group mainly uses springs located in uncontaminated Produzione thermoelectric plants in protected areas, while areas for water supply. For example, Rome is one of the few met- the analyses carried out on Acea Ato 2 infrastructure found ropolitan areas in the world to boast a water resource of such ex- 7 plants in protected areas (SPAs, SCIs or regional parks)101. cellent quality at the origin that it hardly requires pre-treatment Built prior to the establishment of parks, protected areas and for purification. special conservation areas, the sites are considered to require The supply system of the entire area covered by OTA 2 – central absolute protection as they are close to springs are managed Lazio is composed of seven large aqueduct systems that trans- with the utmost attention to the conservation of existing eco- port water derived from 14 main sources to the distribution net- systems and the preservation of the water flow. In an area works and from numerous smaller local sources (mainly wells), for around the Acqua Vergine springs, for years Acea Ato 2 has a total flow that exceeds 21,000 litres/second. The drinking wa- monitored the presence of the Peregrine falcon, a protect- ter distribution network extends for about 10,400 km. In addi- ed species that, despite preferring open and wild areas, can tion to this priceless natural heritage, Lake Bracciano is a reserve nest even in artificial constructions like towers and bell towers to be used only in cases of emergency, after treatment. In 2019 in heavily built-up territories. Every year a large community Acea Ato 2 completed the transformation of the “Grottarossa” including scholars, ornithologists and simple enthusiasts fol- water purification plant on the Tiber, formerly a treatment plant lows the lives of the Peregrine Falcons who live among the for non-potable uses, which, once having obtained the necessary Acqua Vergine springs, thanks to a webcam managed by Ornis authorisations, will be ready to be used for water purification in italica, an association of researchers promoting the Birdcam. the event of a water emergency.

101 Specifically the Peschiera, Le Capore, Pertuso, Ceraso Doganella, Acqua Vergine, Lago di Bracciano and Sorgenti Simbrivio catchment facilities.

174 ACEA GROUP / SUSTAINABILITY REPORT 2019 THE NEW SUSTAINABLE WORKS ON THE PESCHIERA – LE CAPORE E MARCIO AQUEDUCTS

In 2019, after the approval issued by the the risks associated with the ageing of the the valley of the Aniene river, namely the relevant Bodies, Acea Ato 2 began the de- current infrastructure and the seismic na- Marcio I and II aqueducts, which for more sign of works on the Peschiera-Le Capore ture of the territory. The size of the infra- than 100 years have carried the water and Marcio aqueducts aimed at ensuring structure and the duration to be guarante- from the springs to Rome and the various the continuity and security of the supply to ed have dictated innovative design choices municipalities along their path (for a total Roma Capitale and the territory of OTA 2. inspired by the most modern execution average flow of 3.5-5 m3/s). The layout of The design of the new works, carried out techniques and monitoring technologies, the two aqueducts has some problems re- in compliance with current regulations, will for the definition of which experts in dif- lated to the ability to ensure adequate hy- be developed following the Envision proto- ferent fields of engineering have been in- gienic protection of the transported wa- col procedures, the first rating system that volved and consulting from universities and ter. Moreover, given the age of the works assesses the economic, environmental and research institutes has been requested. In and their limited management flexibility, social sustainability of infrastructure. the coming months the design will also un- works have been started to make the dergo numerical/physical modelling for the Marcio system reliable from the point of New upper section of Peschiera-Le Capore most important elements. view of the quality and continuity of the In July the specifications for the renewal of In 2019 the objectives of the works were resource and the flexibility of operations, the concession for the derivation from the identified, with the drafting of the Require- benefiting the overall resilience of the ca- springs for Roma Capitale were signed, and ment Framework (QE), the design specifi- pital’s supply. consequently, due to the current manage- cations were defined with the drafting of the In 2019 the objectives of the works were ment agreement, Acea Ato 2 was awar- Design Guidance Document (DIP) and the identified with the drafting of the QE, ded the pro tempore concession of the Feasibility Document of the Project Alter- the design specifications were defined integrated water service in the territory of natives, the Technical-Economic Feasibility with the drafting of the Design Guidan- OTA 2 Central Lazio – Rome. This impor- Project and the Final Project. The cost-be- ce Document and the drafting of the tant result, awaited for 23 years, is prepa- nefit analysis prepared by the Department Feasibility Document of the Project Al- ratory to the design and implementation of of Management and Law of the University ternatives was completed. After careful the aqueduct’s safety works. The planned of Rome “Tor Vergata” was used to choose examination with the multicriteria analy- works, now in the final design stage, involve the solution to be developed. In 2020 the sis, from the many possible solutions the construction of a second 27 km line of authorisation phase will be carried out, pre- four hypotheses were identified that will infrastructure that will connect the spring paratory for the call for tenders, which will be assessed as part of the cost-benefit with the Salisano node, which represen- also include an Environmental Impact As- analysis performed by the Department ts the upper section of the Peschiera-Le sessment (VIA). of Management and Law of the Universi- Capore aqueduct system. The planned ty of Rome Tor Vergata. doubling will make the supply of the con- New Marcio aqueduct The completion of the design process and cession capacity to Rome and the other Two parallel aqueducts originate from the start of the authorisation process prior areas more secure and resilient, countering the springs of Acqua Marcia, located in to the call for tenders are expected in 2020.

The drinking water system of the OTA 5 Southern Lazio of aqueducts and supply networks, with about 1,540 km of – Frosinone region is constituted by installations and net- total distribution103. works, for conveyance and distribution, which are in charge Protection and safeguarding of water resources are also of 7 principal springs from which the same number of aq- facilitated by compliance with the provisions of Legislative ueduct systems have their origin, for a total of 5,500 km of Decree no. 152/2006, which, in Article 94, regulates the network102. In the region of the Sarnese Vesuvian District, methods for protecting areas where there is surface water the different springs and wells described in table no. 45 and groundwater intended for human consumption. feed about 4,970 km of water network, of which 811 km Table no. 45 describes the location and surface areas in of aqueducts and supply networks. Just as in the province square metres of the areas subject to absolute protection104 of Benevento the plurality of springs feeds about 170 km in the provinces of Rome, Frosinone and Benevento.

TABLE NO. 45 – THE PRINCIPAL SOURCES UNDER PROTECTION surface sensitive area municipality (m2)(*) IN OTA 2 – CENTRAL LAZIO Peschiera springs municipality of Cittaducale (Rieti, Lazio) 375,322 Le Capore springs municipality of Frasso and Casaprota (Rieti, Lazio) 997,848 Acqua Marcia spring municipalities of Agosta-Arsoli-Marano Equo (Rome) 1,181,979 Acquoria spring municipality of Tivoli (Rome) 17,724 Pantano Borghese Acqua Felice springs municipality of Zagarolo (Rome) 779,143 Simbrivio springs and wells municipality of Vallepietra (Rome) 194,755

102 The Acea Ato 5 water network as a whole consists of 5,496 km, of which 1,208 km of aqueducts and supply networks. 103 2018 data. 104 The areas of absolute protection are the areas immediately surrounding the catchments or off-springs, as defined in Legislative Decree no. 152/2006.

RELATIONS WITH THE ENVIRONMENT 175 TABLE NO. 45 – THE PRINCIPAL SOURCES UNDER PROTECTION (cont.)

Pertuso springs municipality of Trevi – Filettino (Lazio) 133,711 Doganella sources municipality of Rocca Priora (Rome) 350,000 Acqua Vergine springs municipality of Rome 500,000 Torre Angela wells municipality of Rome 70,829 Finocchio wells municipality of Rome 64,166 Laurentina wells municipality of Ardea 13,661 Pescarella wells municipality of Ardea 2,433 Lake of Bracciano municipality of Rome 169,200

IN OTA 5 – SOUTHERN LAZIO (*) Posta Fibreno wells municipality of Posta Fibreno (Frosinone) 20,000 Tufano wells municipality of Anagni (Frosinone) 18,000 Capofiume spring municipality of Collepardo (Frosinone) 10,000 Madonna di Canneto spring municipality of Settefrati (Frosinone) 10,000 Forma d’Aquino wells municipality of Castrocielo (Frosinone) 20,000 Carpello wells municipality of Campoli Appennino (Frosinone) 15,000 Mola dei Frati wells municipality of Frosinone 5,000

IN THE PROVINCE OF BENEVENTO – OTA – CALORE IRPINO municipalities of Benevento, Telese Terme, Castelpagano, Vitulano, Melizzano, 12 wells 9,110 Sant’Agata de’ Goti, Cautano and Forchia Ciesco spring Castelpoto 307 Faitillo and Orto dei Ciuffi spring San Giorgio La Molara 2,412 Gradola spring Tocco Caudio 707 Monticelli spring Castelpagano 358 Pietrafitta and Ruggiero spring Torrecuso 2,242 San Vito spring Frasso Telesino 249 Voneventa spring Molinara 516

IN THE SARNESE VESUVIANO DISTRICT Vado spring municipality of Bracigliano (Salerno) 1,338 Forma spring municipality of Gragnano (Naples) 322 Imbuto spring municipality of Gragnano (Naples) 187,159 S.M. Lavorate spring municipality of Nocera Inferiore (Salerno) 5,971 spring and well field S.M La Foce municipality of Sarno (Salerno) 60,202 Fontana grande spring municipality of Castellammare di Stabia (Naples) 330 Murata, Pugliana, Casaliciello, Santa Lucia, municipalities of Cercola, Ercolano, Pollena Trocchia, Roccarainola, 15,473 Tartaglia complexes San Giorgio a Cremano (Naples) Monte Taccaro complex, Angri well field municipality of Angri (Salerno) 43,072 Suppezza, Gragnano, San Mauro Montalbino, municipality of Castellammare di Stabia, Gragnano, Nocera Inferiore, 46,610 Mercato Palazzo, Santa Lucia well field Sarno (Salerno) municipalities of Castel San Giorgio, Mercato San Severino, Traiano, Stromboli-Vesuvio, Petraro wells 7,203 Nocera Superiore (Salerno) municipalities of Bracigliano, Castel San Giorgio, Corbara, Fisciano, Mercato 21 wells in the province of Salerno 10,657 San Severino, Nocera Inferiore, Nocera Superiore, Pagani, Siano (Salerno) municipalities of Castellammare di Stabia, Palma Campania, Roccarainola, 4 wells in the province of Naples 1,529 San Giorgio a Cremano (Naples)

(*) The surface area data is estimated.

176 ACEA GROUP / SUSTAINABILITY REPORT 2019 For the monitoring of the area where the springs are located, earth movements, small landfills. Acea Ato 2 directly verifies Acea also uses “satellite observation”. Surveillance is concen- the actual existence of threats to the water, ensuring precise trated in the places showing – on the basis of the compar- monitoring. In fact, in 2019, thanks to the use of a satellite to ison between two images taken from space at a distance of perform change detection and additional inspections carried several months – an unjustified or in any event suspect mor- out along the supply and capture network, 57 violations were phological variation, such as new, unsurveyed constructions, identified.

ENERGY SEGMENT

SCOPE OF REFERENCE

The Energy Segment chapter includes Areti, Acea Produzione, Acea Ambiente’s plants and Ecogena’s data, the latter in terms of energy produ- ced and Energy Efficiency Certificates. The waste to energy activities are described in the chapter Environment Segment – Waste Management.

904 GWh TOTAL PRODUCED ENERGY: 229,000 tonnes of CO2 saved 70% FROM RENEWABLE SOURCES (635 GWh) THROUGH THE PRODUCTION OF ELECTRICITY FROM RENEWABLE SOURCES INSTEAD OF TRADITIONAL SOURCES

The Group oversees the entire electricity supply chain thanks to and Refuse-Derived Fuel – RDF, a primary energy source de- the operations of companies that, as required by the regulation of rived from waste, both with shares equal to about 50% of bio- the electricity market, are independent of each other. degradable material. In particular, Acea is active in the production of electricity and heat Generation from renewable sources (hydroelectric and pho- seeking to increase the share from renewable sources; in the distribu- tovoltaic, with the exception of waste-to-energy) and from tion of electricity in the Rome and Formello areas, including the man- fossil fuels (thermoelectric) – the latter mainly through the agement of public lighting; and in the sale of electricity, heat and gas. high-efficiency cogeneration plant – is entrusted to Acea Acea is also committed to innovation applied to the management Produzione. of networks – remote management and smart grid – having to The inventory of generators available to the Company consists of: manage, for example, prosumers connected to its energy distribu- • 7 hydroelectric power stations located in the Lazio and Abru- tion network, whose flows of electricity generation and consump- zzo regions for a total of 122 MW; tion are no longer one-way (see also the chapters Customers and • 2 thermoelectric power stations located in the territory of the the community and Institutions and the company). Municipality of Rome: Montemartini (78.3 MW) and Tor Di

Valle (19.0 MW), for 97.3 MWe total installed power available; • A photovoltaic park, for a total of 36.5 MWp, of which 28 ENERGY PRODUCTION: MW acquired in the second part of the year. FOSSIL AND RENEWABLE The Company Acea Ambiente ensures the generation of energy from waste-to-energy with two waste-to-energy plants located in ENERGY SOURCES San Vittore del Lazio and Terni. The total gross electrical power currently available is equal to

GROUP PLANTS about 58 MWe. Acea produces electricity mainly through hydroelectric plants. In addition, Acea Ambiente produces electricity using biogas de- A significant share is produced by waste-to-energy of pulpers rived from the anaerobic digestion process.

RELATIONS WITH THE ENVIRONMENT 177 TABLE NO. 46 – INSTALLED POWER OF THE ELECTRIC POWER STATIONS OF ACEA PRODUZIONE

hydroelectric power stations thermoelectric power stations Castel Madama power plant (Rome) Tor di Valle power plant: high efficiency cogeneration section (CAR)(*) gross power 9.4 MW (Rome) methane fuel – gross power 19.0 MW G. Ferraris power plant in Mandela (Rome) Montemartini (Rome) power plant gross power 8.5 MW diesel fuel – gross power 78.3 MW Salisano (Rieti) power plant gross power 24.6 MW G. Marconi power plant in Orte (Viterbo) gross power 20.0 MW Sant’Angelo (Chieti) power plant

gross power 58.4 MW Cecchina (Rome) power plant gross power 0.4 MW Madonna del Rosario (Rome) power plant gross power 0.4 MW general total: gross capacity 219 MW

(*) The CAR plant in Tor di Valle provides district heating service in the area south of Rome.

The installed capacities, which overall amount to about 315 MW105, are represented in chart no. 45, distinguished by energy source.

CHART NO. 45 – INSTALLED ELECTRICAL POWER OF THE GROUP BROKEN DOWN BY ENERGY SOURCE (MW) (2019)

2019 78.3 | diesel fuel 19 | natural gas (cogeneration) 58 | waste-to-energy 121.7 | hydroelectric 36.5 | photovoltaic solar (*) 1 | biogas

(*) Photovoltaic MW under the responsibility of Acea Produzione also include 28 MW acquired in the second half of 2019. The energy produced by the new plants will be reported from 2020.

ELECTRICITY PRODUCED Acea Produzione has continued to modernize and improve the ef- In 2019, the total gross production of electricity decreased to ficiency of its hydroelectric plants. After the works carried out in about 904 GWh, -7% compared to 968 GWh last year due to previous years at the Guglielmo Marconi, Salisano and Alessandro the low rainfall, which reduced hydroelectric production, and some Volta power plants in 2019, revamping continued on the Galileo problems related to the line turbines of the waste-to-energy plant Ferraris hydroelectric plant in Mandela, also located in the prov- in San Vittore del Lazio which, in addition to the postponement ince of Rome, which will end in January 2020, making it possible of the plant’s maintenance (due to the regional ordinances put in to optimize the use of available water resources, under the same place to overcome the waste emergency in Rome), resulted in less conditions of installed and licensed power. positive energy performance than planned. The share of electricity generated by renewable sources, about 635 With regard to the share of green energy from waste-to-energy, GWh, has proven to be predominant and equal to about 70% of about 50% of the production from this type of plant is renewable, the total, with the following contributions: being associated to the combustion of the biodegradable fraction • 426 GWh from hydroelectric power, of waste used as a primary source. In particular, the renewable • 178 GWh from waste-to-energy, share of the fuel (RDF) entering the San Vittore del Lazio plant • 20 GWh from biogas (Orvieto plant), was equal to 51% of the total of waste-to-energy, while in the Terni • 11 GWh from solar panels (see chart no. 45 and table no. 47). plant this share was around 47%.

105 The total installed power includes the Acea Produzione plants, the waste-to-energy plants and the Orvieto plant (Acea Ambiente) for the production of biogas.

178 ACEA GROUP / SUSTAINABILITY REPORT 2019 CHART NO. 46 – ELECTRICITY PRODUCED SUBDIVIDED BY PRIMARY ENERGY SOURCE (TJ) (2019)

2019 4.9 | diesel fuel 320.1 | natural gas 643.8 | waste-to-energy (thermoelectric) 1,533.4 | hydroelectric 642.2 | waste-to-energy (renewable) 39.2 | photovoltaic solar 71.2 | biogas

NOTE The values reported in the chart are expressed in TJ (1 GWh=3.6TJ).

TABLE NO. 47 – ELECTRICITY PRODUCED (BY PRIMARY ENERGY SOURCE) (2017-2019)

2017 2018 2019 PRIMARY ENERGY SOURCE TJ (GWh) (*) diesel fuel 7.7 (2.2) 2.0 (0.6) 4.9 (1.4) natural gas (cogeneration) 135.2 (37.6) 261.9 (72.8) 320.1 (88.9) waste-to-energy (about 50% of the total) 682.9 (189.7) 718.4 (199.5) 643.8 (178.8) total thermoelectric 825.8 (229.4) 982.3 (272.9) 968.8 (269.1) hydroelectric 1,369.7 (380.5) 1,715.5 (476.5) 1,533.4 (426.0) waste-to-energy (about 50% of the total) 700.2 (194.5) 684.6 (190.2) 642.2 (178.4) biogas 78.7 (21.9) 67.1 (18.6) 71.2 (19.8) photovoltaic solar (**) 41.7 (11.6) 36.7 (10.2) 39.2 (10.9) total renewables 2,190.4 (608.4) 2,503.9 (695.5) 2,286.0 (635.0) general total 3,016.4 (837.9) 3,486.2 (968.4) 3,254.8 (904.1)

(*) 1 GWh = 3.6 TJ. (**) Photovoltaic includes the production at the plants of the water area (Acea Ato 2) and at the waste management plant of Orvieto, for a total of 2 GWh produced. The energy produced by the plants acquired in the second half of 2019 will be included in the next report.

The decrease in energy produced by hydroelectric power plants, In addition to the management described above, the Group op- equal to about 10.6% compared to 2018, is due to the lower rainfall erates Ecogena which, certified as an ESCo (Energy Services recorded during the year. Company) in accordance with UNI CEI 11352:2014, develops the With regard to thermoelectric energy, the increase in production is energy efficiency initiatives for the Group and reports their results due to a greater availability of the Tor di Valle plant. to Gestore dei Servizi Energetici (GSE) for the awarding of Energy Efficiency Certificates (EEC). THERMAL ENERGY PRODUCED In 2019 Acea Produzione continued the project of extending the The activities assigned to Ecogena include also the design and district heating network of Mezzocammino district in the zone building of trigeneration plants107 for the production, in combined South of Rome. mode, of electrical, heat and cooling energy. The Tor di Valle thermoelectric power plant generated about 96 In 2019 cogeneration plants were managed, combined with district GWh of thermal energy. The heat generated was used to serve heating networks for a total of 5 MW of electrical power. The pro- 40,054 inhabitants in the zone south of Rome (Mostacciano, duction of thermal and refrigeration energy is increasing compared Torrino and Mezzocammino) by means of a district heating net- to previous years, while there is a slight overall decrease in electric- work which sever a volume equal to 3,651,124 cubic metres106. ity production (see table no. 48).

106 The data is from August 2019. 107 Cogeneration, i.e. the combined production of electrical and thermal energy, allows high efficiencies to be achieved, between 80 and 90%. Trigeneration, which is a special application of cogeneration, allows use of a part of the thermal energy recovered in order to produce cooling energy in the form of cooled water for air conditioning in rooms or for industrial processes.

RELATIONS WITH THE ENVIRONMENT 179 TABLE NO. 48 – THE PRODUCTION OF ENERGY BY ECOGENA PLANTS AND ENERGY EFFICIENCY CERTIFICATES EEC (2017-2019)

2017 2018 2019 ENERGY PRODUCED TJ (GWh) electricity 61.9 (17.2) 54.1 (15.0) 51.5 (14.3) of which plants owned by Ecogena 56.7 (15.7) 50.3 (14.0) 49.0 (13.6) of which plants owned by third parties 5.1 (1.4) 3.9 1.1 2.7 (0.7) thermal energy 90.4 (25.1) 95.4 (26.5) 103.3 (28.7) of which plants owned by Ecogena 74.8 (20.8) 81.1 (22.5) 89.2 (24.8) of which plants owned by third parties 15.7 (4.4) 14.3 (4.0) 14.0 (3.9) refrigeration energy (all owned plants) 17.0 (4.7) 34.5 (9.6) 37.6 (10.5) EECs Total EECs (all from plants owned by Ecogena) 1,039 1,359 954 NOTE The topic of EECs is dealt with in the Energy savings section of the chapter The use of materials, energy and water. ENERGY DISTRIBUTION THE DISTRIBUTION NETWORKS

distribution network approximately 10,600 constant territorial in Rome and Formello: GWh electrical power protection about 31,000 km demand on our grid (underground HV grid/ total HV grid): 46%

Areti manages the electricity distribution network of Rome and The environmental indicator related to the protection of the re- Formello, extending over about 31,000 km and capable of supply- gion, calculated as a percentage share of the underground high ing about 2.8 million resident inhabitants. In terms of volumes of voltage grid (HV) in relation to the total of the HV lines in use electricity distributed, about 9,830 GWh in 2019, Acea is the third (overhead and underground), has improved in recent years, and largest Italian operator in the sector. in 2019 was stable compared to the previous year, equal to 46% In table no. 49 the principal plant data of the Company are de- (44% in 2017). This also as a result of the ongoing transformation scribed, including the number of primary and secondary substa- and modernisation of the high and very high voltage electricity tions, the transformers108 and the km of overhead and underground distribution grid. distribution lines.

TABLE NO. 49 – NUMBER OF OVERHEAD AND UNDERGROUND DISTRIBUTION LINES AND PLANTS (2017-2019)

Areti SYSTEMS AND OUTPUT m.u. 2017 2018 2019 High Voltage/High Voltage – High Voltage/Medium Voltage primary sub-stations no. 71 70 70 High Voltage/High Voltage and High Voltage/Medium Voltage transformers no. 169 166 170 transformation power MVA 7,921 7,631 7,781 sub-stations in use no. 13,159 13,211 13,238 Medium Voltage/Medium Voltage – Medium Voltage/Low Voltage transformers no. 12,832 12,838 12,883 transformation power MVA 6,203 6,236 6,282 OVERHEAD AND UNDERGROUND NETWORKS high voltage network – overhead lines km 310 282 282 high voltage network – underground lines km 243 243 243 medium voltage network – overhead lines km 419 424 422 medium voltage network – underground lines km 10,137 10,166 10,470 low voltage network – overhead lines km 1,641 1,641 1,642 low voltage network – underground lines km 18,147 18,306 18,417

108 With regard to polychlorinated biphenyls (PCBs), pursuant to Legislative Decree no. 209/99 and Law no. 62/05, Acea disposed of transformers with PCBs above the 500 ppm threshold in 2009. In 2019, 194 transformers with PCBs above 50 ppm but below the 500 ppm threshold, including 93 for public lighting, were reported to Arpa, and 10 transformers were disposed of, for a total weight of 13,420 kg and a quantity of PCBs of 1,838 ppm.

180 ACEA GROUP / SUSTAINABILITY REPORT 2019 With reference to the electric and magnetic fields, in particular green coloured pylons and tubular supports, consistently with related to the primary transformer substations, High and Medi- the requirements of the Rome Nature Body. um Voltage overhead electricity lines and secondary transformer The complete rearrangement of the grid, as envisaged in the stations, the possible risks for the health of employees and the Plan, will generate significant environmental benefits re- community of reference are dealt with, respectively, in the Risks lated to the energy savings expected, amounting to about Evaluation Document and in the Corporate Environmental Analy- 58,000,000 kWh, equivalent to the annual consumption of ses Document. Areti conducts periodic sample checks in the com- about 20,000 households. pany’s sites, carried out also following reports by users/customers The management of the electricity distribution network of Rome or External Bodies. Additional checks are conducted by ARPA and Formello is characterized by the continuous improvement of Lazio109 following specific requests by the public and customers. the performances, with particular attention to energy efficiency. Every year Areti implements initiatives to reduce grid losses, which MEMORANDUM OF UNDERSTANDING include the reclassification of medium voltage levels from 8.4 kV FOR THE REARRANGEMENT OF to 20 kV and the installation of MV/LV transformers with very low THE ELECTRICITY NETWORK losses. For further information see the Energy savings section in the 2019 saw the continuation of the plan to modernize the high chapter The use of materials, energy and water. voltage electricity distribution network (150 kV), defined in the The activities performed for the smart city that continue to Memorandum of Understanding signed in 2010 among Areti SpA improve the performance of the networks thanks to the evo- (formerly Acea Distribuzione), the Municipality of Rome and Terna lution and integration of management systems and, in general, SpA. In particular, during the following activies were carried out: the applications of technological innovation in the manage- • continuation of the demolition of the 150 kV Flaminia 2 – ment of the network, are illustrated in the chapter Institutions East Sorting 2 line, for a length of 22.6 km and 74 supports; and the Company. • continuation of construction works for the 150 kV “Rome Also as a result of the activities mentioned above, energy losses on North-San Basilio” line, relative to the new section starting at the grid during the year amounted to approximately 7% of the total the Rome North Electrical Station for a length of 4 km with transported, a slight decrease compared to 2018. ENVIRONMENT SEGMENT – WASTE MANAGEMENT

SCOPE OF REFERENCE

The chapter includes the activities of the waste treatment hub, the waste-to-energy plants, the compost production plants and Aquaser, all in Acea Ambiente.

16,540 t ABOUT 11,500 kNm3 357 GWH WASTE-TO-ENERGY: OF quality compost OF BIOGAS PRODUCED OF ENERGY PRODUCED BY ABOUT 434,600 t PRODUCED AND, FROM THIS, waste-to-energy OF WASTE INPUT AND (+40% COMPARED 20 GWh OF ENERGY ABOUT 97,400 t TO 2018) OF WASTE OUTPUT: 22% (output/input)

In line with the European vision of the Circular Economy, Acea man- • production of high quality compost for agriculture. ages the waste cycle in order to recover, recycle and reuse waste in the Of importance for the company is also the issue of treatment and best possible way and, when possible, recover energy. The Group, in reuse of non-hazardous waste, and in particular hazardous waste particular, occupies itself with the following phases of the waste cycle: that presents the greatest problems for disposal, not only in envi- • treatment of municipal solid waste (MSW) and other types ronmental and social terms, but also in economic terms, given the of waste (like green waste from separate collection, industrial high cost. waste, etc.), for the recovery of material and disposal of only the residues in landfills; In 2019 Acea developed the widespread composting project called • incineration with energy recovery with consequent reduction Acea SmartComp (see the box below and also The commitment to of the soil needed for disposal; research and innovation in the chapter Institutions and the company)

109 According to the following legislative references: Legislative Decree no. 81/08; Italian Electro-technical Committee Guide 211-6 first ed. of 01/2001; Prime Min- isterial Decree 8/7/2003 “Fixing of the limits of exposure, the values of attention and the quality objectives for the protection of the population from electric and magnetic fields at the network frequency (50Hz) generated by the power lines”.

RELATIONS WITH THE ENVIRONMENT 181 ACEA SMARTCOMP

Acea SmartComp is an innovative solution for the transformation of organic waste into a product (compost), directly at the site where the waste is produced. The project is inspired by the waste transition, a new model of zero km waste management based on a widespread and distributed network of mini-processing plants for the organic fraction. Specifically, the composter is an accelerator of the aerobic degradation process of organic substances, and the compost produced, redu- ced in weight by up to 20% compared to the original treated waste, is a product that is naturally sanitized and ready for use as a soil con- ditioner. The innovation of the process lies in the smart operating logic based on advanced sensors – algorithms and dashboards, prepared jointly by ENEA and the University of Tuscia – and smart remote control of the process, with the optimisation of ageing times, product quality and environmental impacts. Organic Production Daily

Compost SmartComp Usage Delivery 90-day cycles Daily

SmartMonitoring Real-Time

The advantages of the process are both financial, withreduction of waste collection and treatment costs, and environmental, with reduction of

CO2 emissions associated with transport. Strong interest has been expressed by large food distribution and by big companies for the use of the composter in company canteens, and commercial initiatives launched in 2019 have led to the signing of a commercial agreement with Fiera di Roma and contracts with other entities and distribution companies. Acea installed the first SmartComp at the canteen in its own headquarters and uses the soil conditioner produced in its green spaces, thus reducing the use of other types of fertilizer.

The following paragraphs provide further information on the oper- integrated cycle of solid urban and assimilated waste produced ating aspects of the activities already mentioned and carried out in in the area that includes all the municipalities of the province terms of waste management. These are modern plants, that have of Terni. The landfill is also authorized to receive special waste. recently been revamped or expanded to improve and renew the The main plant sections are mechanical biological treatment processes and recover matter and/or energy where possible, and of solid urban waste, composting and refining of the organic the use of advanced technologies necessary to improve the effi- fraction of the separated waste and disposal in landfills. The ac- ciency of waste management. tivities carried out enable the recovery of material (production of quality compost) and energy (use of the biogas produced). Management is carried out in compliance with certified management systems (see Management systems in Corporate WASTE MANAGEMENT: identity) with the aim of achieving maximum recovery from COMPOSTING, WASTE-TO- the materials and encouraging both the production of ener- ENERGY AND RELATED SERVICES gy from renewable sources and the reduction of waste to be sent to landfills. In 2019 the total waste entering the plant was 99,910 tonnes. INTEGRATED WASTE TREATMENT – 57% (about 56,700 tonnes) was disposed of in landfills and the ORVIETO PLANT remainder almost entirely sent to the anaerobic digestion and The company Acea Ambiente manages a major plant for the composting section of the treatment plant. For more details treatment, recovery and disposal of waste in Umbria, 3 km see Environmental Accounts. from the town of Orvieto, in particular the treatment of the At the Orvieto site there are two energy production plants

182 ACEA GROUP / SUSTAINABILITY REPORT 2019 powered respectively by the biogas produced by the anaerobic INTERMEDIATION AND TRANSPORT OF WASTE section of the treatment plant and by the biogas produced by In 2019, Aquaser, which loads, transports, recovers and dis- the landfill. The electricity generated is broken down as follows: poses of waste produced by purification plants, managed a to- • about 3.3 Mm3 of biogas and 6.7 GWh of energy were tal of 580,000 tonnes (570,000 tonnes in 2018). produced at the treatment plant in 2019; With regard to intermediation, during the year Aquaser took • about 7.9 Mm3 of biogas and 13.1 GWh of energy were charge of approximately 207,000 tonnes of waste, of which produced at the landfill. 184,000 tonnes are attributable to the Group’s water com- Overall, about 18.6 GWh of electricity was fed into the grid. panies112, and in particular approximately 130,000 tonnes to The Orvieto hub is also equipped with a photovoltaic plant Acea Ato 2 and Acea Ato 5. owned by Acea Produzione, which generated about 390 The dried out and dehydrated sludge coming from these com- MWh in 2019, used to cover part of the plant’s consumption panies was sent to the following end destinations: of electricity. • 49.3% to material recovery operations (pretreatments aimed at agricultural use – conditioning, composting); QUALITY COMPOST PRODUCTION • 1.6% to recovery of energy (waste-to-energy). In addition to the Orvieto site, Acea Ambiente has three The remaining 49.1% was disposed of. Also this year, due to reg- other composting plants in Aprilia, Monterotondo Marittimo ulatory constraints direct spreading was not used in agriculture. and Sabaudia. Aquaser in particular used its own means to transport about The Aprilia plant, still under seizure, was the subject of an ex- 61,000 tonnes of non-hazardous waste. pansion which, once completed, will enable the recovery of 120,000 tonnes of organic fraction per year, while the Mon- WASTE-TO-ENERGY terotondo Marittimo plant, which has undergone expansion Energy recovery from waste is an important part of the Circular and revamping in recent years, has a recovery capacity of Economy113 and, in addition to providing energy and economic 70,000 tonnes/year for organic waste fraction, green fraction advantages, it leads to a notable volumetric reduction and the and sludge. Both sites have also implemented a new anaero- biological stabilisation of waste, avoiding as far as possible the bic digestion section, which will allow the recovery of electrical disposal of this waste in landfills as such. and thermal energy from 2020110. In addition to the activities already described of waste treat- At the Sabaudia plant, which has been undergoing revamping/ ment and anaerobic digestion, Acea Ambiente also manages the maintenance since 2016, operations were resumed in August waste-to-energy process through two plants, one in San Vittore 2018 and again suspended on 31.10.2019 to allow further re- del Lazio and the other in Terni. The plants operate according vamping111. The liquid waste treatment section is currently in- to certified environmental management systems: UNI EN ISO active. The plant has a treatment capacity of 20,000 tonnes 14001:2015 certification and EMAS III European registration, of compostable waste per year and 30,000 tonnes of liquid extended to 2021. For additional information on these aspects waste per year. see also the section on Management systems in Corporate identity.

WASTE RECOVERY TO IMPROVE RECYCLING AND THE CIRCULAR ECONOMY IN THE PAPER SECTOR

Working with Assocarta and Comieco, Acea Ambiente organized therefore end up in a landfill. Treating almost 100,000 tonnes of wa- the conference “Closing the Circle: Recovering waste to improve ste per year, the plant is one of the top industrial entities on a national Recycling and the Circular Economy in the Paper sector”, held in Ter- scale for the amount of pulper converted into electricity, on average ni for the Paper and Cardboard Recycling Month. Designed to take 75,000-80,000 MWh/year, and the recovery chain is planned to be stock of the circular economy in the paper sector, thanks to the large further extended through the use of fly ash, a volatile by-product ge- number of players involved in the supply chain the initiative provided nerated by the combustion. The conference, which included presen- an important opportunity for reflection to offersignificant insights tations by the President of Acea’s Industrial Environment Segment, into the recovery of waste and the improvement of recycling. For the Head of the Research and Development Unit and the Operations example, Acea Ambiente’s waste-to-energy plant in Terni uses pulper Director of Acea Ambiente, highlighted the sustainability aspects as its fuel, a waste of paper processing that is not recyclable and would inherent in the sector.

110 The anaerobic digestion plants were started in early 2020. 111 During 2020, it is hoped that the pending authorisation procedures will be concluded so that the tender procedure for the executive design and construction of the new composting plant can be published. The upgrading project will increase the treatment capacity to 60,000 t/year of incoming waste. 112 The data detailed here for the sake of completeness concerns sludge for which Aquaser has managed the entire supply chain, from loading to transport and final dispos- al, originating from the following Group Companies: Acea Ato 2, Acea Ato 5, AdF, Umbra Acque, Publiacqua, Acque, Crea Gestioni, Umbria2SII. 113 The European Union’s circular economy package has been in force since 04.07.2018.

RELATIONS WITH THE ENVIRONMENT 183 The Plant of San Vittore del Lazio is composed of three inde- 2019 was a year of normal operation. The plant’s actual available pendent lines of waste-to-energy designed to be fed with re- electric power was about 44 MW and about 276 GWh of electric fuse-derived fuel (RDF), now called Solid Refuse Fuel (SRF), power was produced. In 2019 energy from waste has been gener- with these characteristics: ated from about 340,500 tonnes of waste.

• 52 MWt of thermal power for line 1 and 56.7 MWt of thermal power installed for each of the other two lines; In its current configuration, the San Vittore del Lazio plant is

• 13.9 MWt of electric power for line 1 and 15.1 MWt of each of the largest in the Lazio Region and plays an important role in the other two lines; the management of urban waste, both for the advanced tech- • Approximately 400,000 t/year of SRF, sludge and other nologies used for its construction and for its considerable waste at full capacity. treatment potential114.

TABLE NO. 50 – THE SAN VITTORE DEL LAZIO WASTE-TO-ENERGY PLANT: OPERATING DATA (2017-2019)

m.u. 2017 2018 2019 incinerated fuel t 345,639 357,174 340,531 gross electric power produced GWh 301.15 306.731 276.270 conversion efficiency(*) kWh/kg CSS 0.87 0.86 0.81

(*) Relationship between gross electricity produced (GWh) and quantity of SRF converted from waste to energy (t).

The Terni plant is composed of a waste-to-energy line and has the • 120,000 t/year of pulper waste (paper mill waste resulting following characteristics: from the pulping of waste paper), as the maximum potential

• 52 MWt of thermal power installed; for incoming waste. • 12.33 MWe of electrical power installed;

TABLE NO. 51 – TERNI WASTE-TO-ENERGY PLANT: OPERATING DATA (2017-2019)

m.u. 2017 2018 2019 pulp incinerated t 99,970 99,971 94,092 gross energy produced GWh 83.10 82.41 80.93 conversion efficiency (*) kWh/kg pulper 0.83 0.82 0.86

(*) Relationship between gross electricity produced and quantity of pulper waste converted to energy. The plant of Terni is also equipped with a photovoltaic plant, which For data on the emissions of both waste to energy plants see in 2019 has generated about 453 MWh of electricity, about 56% the chapter Air emissions in addition to the data in the Environ- consumed on site and the rest injected into the grid. mental accounts.

WATER SEGMENT

SCOPE OF REFERENCE

The scope of reference includes the companies Acea Ato 2, Acea Ato 5, Gori and Gesesa. Acque, AdF, Publiacqua and Umbra Acque, water companies not included in the scope of the Consolidated Non-Financial Statement (pursuant to Legislative Decree no. 254/2016). They have been included only in the water graphs, where their contribution is immediately evident, and in a few other global data (water fed into the system and analytical calculations). Specific data concerning these Companies are provided in a separate chapter. Water company data sheets and overseas activities.

5.8 million APPROXIMATELY IMPLEMENTED THE FIRST 607,309 INHABITANTS SERVED AND 24,200 km OF Water Safety Plan analytic tests 446 Mm3 OF DRINKING DRINKING WATER (WSP) OF GROTTAROSSA ON DRINKING WATER WATER SUPPLIED NETWORK MANAGED BY IN ACEA ATO 2 (ACEA ATO 2, ACEA ATO 5, BY ACEA ATO 2, ACEA ATO 5, ACEA ATO 2, ACEA ATO 5, GORI AND GESESA) GORI AND GESESA GORI AND GESESA

114 With reference to Decree Law 133/2014 (so-called “Sblocca Italia”), the plant has been defined as a strategic structure of primary national interest for the pro- tection of health and the environment, as per Lazio Regional Decree no. 199 of 24/04/2016.

184 ACEA GROUP / SUSTAINABILITY REPORT 2019 Of all the Group’s core businesses, the management of water in all million inhabitants, with volumes of drinking water fed into the phases of the integrated water service is one of the most impor- network in 2019 equal to about 1,370 million cubic metres. tant. The activities are carried out with growing attention, in line The volumes of drinking water introduced by Acea Ato 2, Acea with the greater attention to water resources at an international Ato 5 and Gesesa amounted to 1,018 million cubic metres, with level. The protection of the resource is expressed in the priority of a total supply116 of 447 million cubic metres for 5.8 million inhab- recovering losses (see the box in the paragraph Attention to wa- itants served. For specific data on the three companies, see the ter consumption), circular economy, activities to combat climate Environmental Accounts. change and in the already mentioned protection of springs (par- In OTA 2 – Central Lazio alone, comprising the city of Rome and agraph Protection of the local region) and searches for new springs 111 other municipalities – of which 79117 under management at 31 and also in an increasingly precise monitoring of water consump- December 2019 – the volume of water withdrawn and fed into tion, seeking to reduce it. the network serving the approximately 3.7 million inhabitants was The total pool of users served in Italy by the Group115 is about 8.6 approximately 690 million cubic metres118.

CHART NO. 47 – THE WATER DISTRIBUTION NETWORK OF THE GROUP IN ITALY (2019)

60,000 51,494 50,000

40,000

(km) 30,000

20,000 12,167 8,233 10,000 6,805 5,496 4,967 5,954 6,315 1,557 0 Acea Acea Gesesa Gori Acque AdF Publiacqua Umbra total Ato 2 Ato 5 Acque NOTE The kilometres of network include the aqueducts

WATER QUALITY companies of the water industrial area. The analyses on the drinking water distributed to users play an essential role for The checks on the quality of the drinking water supplied and the resulting health related effects. A summary of the work of effluent returned to the environment, after purification, carried out in this area, by all the water companies, is shown are performed in a planned and constant manner by the in chart no. 48.

CHART NO. 48 – TESTS OF DRINKING WATER, TOTAL AND BY COMPANY (2019)

1500000 1,416,870

1200000

900000

600000

365,728 329,582 300000 261,251

(n. determinazioni analitiche) (n. 135,500 123,790 109,363 83,228 0 8,428 Acea Acea Gesesa Gori Acque Publiacqua AdF Umbra total Ato 2 Ato 5 Acque NOTE For Acea Ato 2 it should be noted that out of the total of 365,728 analyses, 320,801 were performed by Acea Elabori, and for Acea Ato 5, including in the analyses performed by the Company those done by Acea Elabori, there are 129,599.

In Rome, the qualitative characteristics of the resource collected es in greater concentrations compared to those permitted by the and distributed are monitored through continuous testing, with relevant legislation. In these areas Acea Ato 2 has carried out, over instruments located along the water systems and through daily the years, a number of initiatives aimed at solving these problems, sampling at the collection points and in the distribution network. In increasing the purification plants able to remove the unwanted Lazio there are areas of volcanic origin where the water has drink- substances and returning their values of concentration well below ability problems, linked to the natural presence of some substanc- the legal limits.

115 As specified at the start of the chapter, the data of the total inhabitants served by the water business, of the volume fed into the network, and the size of the networks and checks on the water (shown in special graphs) include all the operational companies in the Group, also those not included within the scope of the Consolidated Non-Financial Statement. 116 This refers to the total amount of drinking water dispensed and billed in the network by the companies in the scope. 117 In 18 other municipalities the integrated water service was managed partially. 118 The items of the water balance of the past three years were calculated using the calculation criteria supplied by ARERA. See the Environmental Accounts for details.

RELATIONS WITH THE ENVIRONMENT 185 Regular monitoring of the chemical/biological parameters of ments are also performed by Group companies independent- the water which circulates in the distribution network of the ly. The subsidiary Acea Elabori, accredited pursuant to the water system allows the quality safety level to be kept high. ISO/IEC 17025 standard, performs and certifies chemical Altogether, during 2019, of the 365,728 analyses119 in the and microbiological analyses in different substrates, includ- territory of OTA 2, for a total of 12,482 samples in addition ing water (see table no. 52 for the analyses performed on to those of the Health Authority, 320,801 were performed Rome drinking water). Gesesa instead uses two outside lab- in the Grottarossa Laboratories, managed by Acea Elabori. oratories (see the Environmental Accounts for aggregate and The analytical checks on the water and the related measure- detailed data).

TABLE NO. 52 – ANALYSES IN ROME (2017-2019) AND MAIN QUALITY PARAMETERS OF THE DRINKING WATER DISTRIBUTED IN LAZIO AND CAMPANIA (2019)

ANALYSES PERFORMED BY ACEA ELABORI ON DRINKING WATER – ROME HISTORICAL NETWORK (2017-2019)

no. of sampling sampling area no. of samples no. of analyses points 2019 2017 2018 2019 2017 2018 2019 collection 57 423 437 329 21,636 21,119 11,968 water system and water feed pipes 22 183 130 164 6,599 5,167 5,617 tanks/water centres 22 119 152 203 4,988 6,306 7,096 distribution networks 405 3,381 3,326 3,095 109,838 109,571 99,835 total 506 4,106 4,045 3,791 143,061 142,163 124,516

MAIN AVERAGE CHEMICAL AND MICROBIOLOGICAL CHARACTERISTICS OF THE DRINKING WATER DISTRIBUTED IN LAZIO AND CAMPANIA (2019) average value average value measurement average value average value parameter Legislative parameters – Acea Ato 2 – Gesesa unit – Acea Ato 5 – Gori Decree no. 31/01 (Rome) (Pezzapiana site) chlorides mg/l Cl 9.4 6.8 62 47.4 <250

sulphates mg/l SO4 13.7 8.3 28 64.3 <250 calcium mg/l Ca 82.9 87.9 126 exempt(*) not required magnesium mg/l Mg 16.3 15.6 31 exempt(*) not required sodium mg/l Na 9.1 4.7 38 40.3 <200 potassium mg/l K 7.5 1.3 14 exempt (*) not required calculated fixed residue mg/l 365.0 348.3 646 541.5 (**)

nitrates mg/l NO3 5.5 3.7 17 37.1 <50 fluorides mg/l F 0.3 0.16 0.55 0.5 <1.50

(*) bicarbonates mg/l HCO3 349.8 347.9 504 exempt not required

(*) In accordance with Legislative Decree no. 31/01 and in agreement with the health authority, Gesesa is exempted from supplying the parameter. (**) Maximum value recommended: 1,500 mg/l.

WATER SAFETY ing procedures under normal and emergency conditions, the water quality control plan, the methods for informing the public and the PLANS (WSPS) competent authorities, etc. WSPs must also be constantly updated The implementation of a Water Safety Plan (WSP) is required for to take into account plant development, changes in the regulatory all water systems pursuant to the Decree of the Ministry of Health environment and climate and environmental changes. Finally, the of 14.06.2017, in implementation of European Union Directive implementation of WSPs must be carried out according to inter- 2015/1787, which endorsed the WSP methodology developed by nationally recognized methodologies developed by the WHO. In the World Health Organization (WHO). The WSP approach is to Italy, the Istituto Superiore di Sanità (ISS) has introduced WHO prevent and reduce the risks inherent in the drinking water service, guidelines and will therefore have to approve WSPs. assessing dangerous events along the entire water supply chain Overall, the implementation of Water Safety Plans will concern (collection, treatment and distribution to the user meter). The risk the large aqueducts managed by Acea Ato 2 that supply the city is calculated according to the severity and probability of a pollution of Rome, up to 90% of the population of OTA 2 and more than event or water shortage. Based on this assessment, the following 200,000 inhabitants of the 45 municipalities of the Provinces of are defined:actions to mitigate risks, monitoring systems, operat- Rieti and Frosinone.

119 The data on analyses of drinking water from 2018 also include tests on aqueducts acquired recently (Civitavecchia and others).

186 ACEA GROUP / SUSTAINABILITY REPORT 2019 In Acea Ato 2, the first WSP implemented in 2019 concerned the WATER LOSSES water system fed by the new Grottarossa plant for the purifica- tion of water from the Tiber, normally used to supply the network Sustainable water management includes the issue of limiting for watering green areas of the city of Rome and Vatican City but leaks from distribution networks (see also Quality in the wa- immediately available in case of emergency to supply the drinking ter segment in the chapter Customers and communities). During water network at the service of 350,000 inhabitants of the central 2019, as in the previous year, the water companies – in par- areas of Rome. In particular, during the year studies for the areas of ticular Acea Ato 2 – continued their intense search for leaks protection and influence were presented to the Lazio Region as re- in order to recover as much water as possible (see the box for quired under the new Regional Water Protection Plan (PTAR). The details). Furthermore, Acea Ato 2 established a unit dedicated concession request was published but has not yet been released. to the protection of water resources and the implementation of In the future the network for watering the green areas of the city of initiatives aimed at reducing losses. Rome and Vatican City will be supplied by the water coming out of Together with the search for hidden leaks, Acea Ato 2 contin- the COBIS purification plant. For this purpose, in 2019 the plant ued to divide the network into districts not connected to each underwent upgrading for the implementation of a specific purifi- other and with measured inputs, which enables the optimisation cation treatment120 (see also Water distributed and returned to the of their management, facilitating and making repairs more time- environment in the chapter Customers and the community). ly and reducing their frequency. Dividing the network into water Acea Ato 5 identified the first water source to be studied to draft districts makes it possible to optimize operating pressures with an the WSP, and continued the mandatory training organized by the immediate advantage in terms of reducing lost volumes, facilitat- Istituto Superiore di Sanità and the Ministry of Health for the staff ing targeted searches for leaks in the most critical districts. who will draw up the Water Safety Plans (WSPs). To date, overall approximately 6,200 km of distribution network In Gori in 2019 the team was formed to prepare the WSPs, and the have been studied and 300 measurement districts have been cre- evaluation of the water system was started. ated. The activity consisted of surveys, flow and pressure measure- In 2019 Gesesa, like Acea Ato 5, trained personnel for the Water ments, map production, user analysis and water balancing, math- Safety Plans (WSPs), and started the acquisition of information on ematical modelling and searches for leaks. The results of the study water collection sources. and efficiency actions were imported into the GIS systems.

THE DIVISION OF THE ACEA ATO 2 WATER NETWORK INTO DISTRICTS

As part of the work to divide the water network into districts, in 2019 approximately 520 flow and pressure meters were installed by Acea Ato 2 technical personnel in the water districts, which will enable the timely monitoring of new and hidden leaks in Rome and in the 12 municipalities concerned, the optimisation of piezometric quotas and the consequent reduction of lost water volumes. The district planning and installation of meters in the districts will progressively involve the entire territory managed by Acea Ato 2.

In 2019 Acea Ato 5 also developed the analysis of the water net- terventions were carried out to reduce water leaks, including the work (especially in the areas of Atina, Cassino, Castrocielo, Col- installation of pressure regulation valves, and several systematic felice, Fiuggi, Frosinone, Morolo, Serrone, Sora, Strangolagalli, leak search searches were performed along the water networks. Roccasecca, Patrica, Sgurgola and Supino).). Moreover, the reclamation projects carried out on 66 km of water In total, 148 districts were created, involving approximately 1,190 networks, distributed over almost all the municipalities of the Dis- km of water network. In addition, a total of 140 leaks – of which 40 trict, enabled recoveries estimated at about 193 l/s. hidden – were identified with leak searches, mainly using acoustic In 2019 Gesesa further developed the division of water networks systems. The division of the network into districts and installation of into districts by extending the reduction of pressures and setting pressure reduction devices has made it possible to reduce network the goal of progressively intervening on the network of all the mu- input volume121 by about 5%. nicipalities managed. Following an analysis of the water networks, In the Sarnese-Vesuvian District, managed by Gori, numerous in- about 2 km of infrastructure was reclaimed.

CHART NO. 49 – ACTUAL WATER LOSSES

Authorized billed Measured billed consumption Billed consumption Unmeasured billed consumption water Authorised consumption Authorized unbilled Measured unbilled consumption consumption Unmeasured unbilled consumption VOLUME INJECTED INTO NETWORK Unauthorized consumption Apparent leaks Imprecision of customer meters Unbilled water Water Leaks in the transmission and distribution network leaks Leaks and spills from tanks Actual leaks Leaks from the user connections to the meter

NOTE The image refers to the model of the International Water Association.

120 A tertiary treatment of double-stage filtration and disinfection with UV rays. 121 The figure is not yet consolidated.

RELATIONS WITH THE ENVIRONMENT 187 In recent years, ARERA has intervened with several resolutions, losses of the “historical network” (Rome and Fiumicino) decreased introducing progressive changes to the process of calculating the to 31.9% (they were equal to 38% in 2018 and 41.5% in 2017), water balance122. The new data, illustrated in detail in the Environ- while the real losses on the distribution network of the entire OTA mental Accounts123, has been prepared according to the new ARE- 2 decreased to 39.2% (they were equal to 44% in 2018 and 45.7% RA calculation method (Resolution 917/2017/R/IDR), also recal- in 2017). culating the previous two-year period, in line with the model of the At Acea Ato 5 the losses in 2019 amounted to approximately 76% International Water Association (see chart no. 49), which requires of the amount fed into the aqueduct system. It is expected that the assessment of water losses on the entire scope of the aque- there will be a reduction in these losses as a result of a search for duct system (and not only on the distribution network), including illicit users and the division of the networks into districts. See the apparent losses. Environmental Accounts for details on individual water balances. Thanks to efforts to improve the efficiency of metering and to Following the actions described above, Gori saw a reduction in combat illicit use, at Acea Ato 2 the overall losses for the year fell global losses from 53.8% to 52.6%. to about 44% (they were equal to 47% in 2018). Furthermore, in At Gesesa124 the losses of the year amounted to approximately line with the downward trend of the previous two years, the real 56% of the total fed into the aqueduct system.

SEWERAGE SERVICE AND TREATMENT SYSTEM

ABOUT 127,750 tonnes OF SLUDGE PRODUCED BY APPROXIMATELY 8,650 km OF SEWERAGE NETWORK ACEA ATO 2, ACEA ATO 5, GORI AND GESESA, OF WHICH AND 338 treatment plants MANAGED BY ACEA ATO 2, 34% RECOVERED ACEA ATO 5, GORI AND GESESA, FOR 666 Mm3 OF TREATED WATER

The integrated water service (IWS) includes the management of proximately 855 million cubic metres, of which 666 million cu- the sewerage and treatment system. The water resource, after uses bic metres by Acea Ato 2, Acea Ato 5 and Gori126. The water in for the various civil purposes, is collected through the sewer pipes output from the plants cited, after having undergone the purifi- and sent to the purifiers. There pollutants are removed via physi- cation treatments described, has chemical and biological proper- cal processes (filtering, sedimentation, flocculation)and biological ties compatible with the life of the receiving body of water and in ones (aerobic and/or anaerobic decomposition of the organic sub- accordance with the values of the parameters which must not be stance with bacteria). exceeded in order to guarantee full compatibility (as per Legislative Thanks to approximately 896 treatment plants (of which 338 Decree no. 152/2006). The sewerage networks managed amount managed by Acea Ato 2, Acea Ato 5, Gori and Gesesa), the to- to about 20,750 km, of which 10,647 km relate to the four Com- tal volumes of water treated by the Group125 in 2019 were ap- panies cited.

CHART NO. 50 – SEWER NETWORKS OF THE GROUP IN ITALY (2019)

25,000

20,749 20,000

15,000 (km) 10,000 5,839 5,000 3,711 2,506 3,062 1,779 1,644 1,685 523 0 Acea Acea Gesesa Gori Acque Publiacqua AdF Umbra total Ato 2 Ato 5 Acque

122 The loss assessment was carried out this year for the three-year period 2017-2019, according to Resolution ARERA 917/17 R/IDR. Until last year the losses were calculated according to the model specified in Ministerial Decree 99/97. 123 The water reports of the Companies active in Umbria and Tuscany, with consolidated net worth, can be examined in the chapter Water company data sheets and overseas activities. 124 Calculations of previous years according to the Arera provisions were not yet available for comparison at the time of publication. 125 Again in this case, the data relating to the number of treatment plants, the volumes treated, the size of the networks and the controls refer to the main Group compa- nies operating in the water sector, including those not included in the full scope of consolidation. 126 At the moment Gesesa does not have the flow meters so it is not possible to measure the quantities of wastewater treated in its purification plants.

188 ACEA GROUP / SUSTAINABILITY REPORT 2019 CHART NO. 51 – ANALYTICAL CHECKS ON WASTEWATER, TOTAL AND BY COMPANY (2019)

495,921 500,000

400,000

300,000

(no. of test) (no. 200,000 170,641 128,450 100,000 41,616 40,127 50,065 38,481 21,027 5,514 0 Acea Acea Gesesa Gori Acque Publiacqua AdF Umbra total Ato 2 Ato 5 Acque

For Acea Ato 2, Acea Ato 5, Gori and Gesesa, the percentage achieved in the purification process, which allowed approximately coverage of the sewerage and purification services, out of the to- 600 million cubic metres of sewage to be made compatible with tal users served by the water service, and the volumes of effluent the receiving ecosystem, were confirmed by the over170,600 cal- treated are given in tables nos. 53 and 54. culations performed. In particular, for Acea Ato 2, the good abatement performance

TABLE NO. 53 – PERCENTAGE COVERAGE OF THE SEWER AND PURIFICATION SERVICES OVER THE TOTAL UTILITIES OF THE WATER COMPANIES OPERATING IN LAZIO AND CAMPANIA (2017-2019)

Company 2017 2018 2019 sewer purification sewer purification sewer purification Acea Ato 2 91.7% 88.0% 91.6% 88.2% 91.5% 88.1% Acea Ato 5 67.7% 56.5% 66.9% 56.1% 66.5% 55.9% Gori 79.9% 57.3% 82.2% 65.7% 82.3% 66.0% Gesesa 81.2% 26.1% 80.2% 27.3% 80.3% 30.4%

TABLE NO. 54 – VOLUMES OF EFFLUENT TREATED BY WATER COMPANIES OPERATING IN LAZIO AND AT BENEVENTO (2017-2019) (*) (Mm3)

Company 2017 2018 2019 Acea Ato 2 553.6 582.7 599.8 Acea Ato 5 21.1 21.2 21.3 Gori 9.0 7.7 45.2

(*) For the time being there are no flow meters at the entry of the purification plants managed by Gesesa.

THE NEW LABORATORIES AT THE MAIN PURIFICATION PLANTS IN ROME

In 2019, the renovation of 4 of the 6 laboratories owned by Acea Ato 2 was completed. The first to be inaugurated, in July, was the newlabora - tory of the purification plant in North Rome, followed by the other three inaugurations of the new laboratories located at the purification plants in South Rome, Ostia and COBIS. The laboratories carry out activities to support the control of the operation and functionality of the systems, ensuring rapid responses according to management needs. The Analytical Control Unit of Acea Ato 2 manages these infrastructures and for each treatment plant prepares a programme for the control of the management and quality parameters of the treated waste. In 2019 the following were analysed by the personnel in the laboratories: • 31,336 samples, 13,874 on the water line and 17,462 on the sludge line; • 135,940 parameters, of which 92,825 for the water line and 43,115 for the sludge line.

In the “historic” area managed by Acea Ato 2, which includes wastewater treated, a very slight increase compared to 2018. Rome and Fiumicino, the main purification plants treated in Table no. 55 shows the details of the main parameters 2019 approximately 514 million of cubic metres of wastewa- from the main treatment plants of Acea Ato 2, Acea Ato ter, a figure that has increased (490 million cubic metres in 5, Gori and Gesesa. Other indicators of the efficiency of 2018). Considering also the smaller purifiers and the plants purification are described in the section Key environmental of the municipalities acquired in OTA 2 (a total of 169) a performance indicators – Water Segment of the Environ- total volume of approximately 600 million cubic metres of mental Accounts.

RELATIONS WITH THE ENVIRONMENT 189 TABLE NO. 55 – OUTPUT PARAMETERS OF THE MAIN PURIFIERS MANAGED BY ACEA ATO 2, ACEA ATO 5, GORI AND GESESA (2019)

concentration limits Gesesa in surface waters Acea Ato 2 Acea Ato 5 Gori (Benevento) Legislative Decree no. 152/06 parameter average values (mg/l)

BOD5 4 4 11 11 ≤ 25 COD 25 20 27 40 ≤ 125 SST 11 6 14 29 ≤ 35 nitrogen (ammoniac, nitric and nitrous) 6 6 7 1 - fosforo 2 1 1 2 - output quantity (t) COD 19,587 1,099 1,203 n.a.(*) - SST 10,267 424 661 n.a.(*) -

(*) For the time being Gesesa has not installed flow meters so the data are not available. The sludge produced during the purification process si mostly sent experiments together with Acea Elabori, including the commis- for recovery of material (see in Environment Segment, the para- sioning of the ozonolysis plant in Ostia, the dryer of the purification graph Intermediation and transport of waste). plant in North Rome and the initiation of anaerobic digestion at the Numerous actions were carried out in 2019 to reduce the amount purification plant in South Rome (see the box for details and also of sludge produced by the purification plants managed by the The commitment to research and innovation in the chapter Institu- Group’s companies. In particular, Acea Ato 2 developed several tions and the company).

BIOMETHANE AS AN OPPORTUNITY FOR INTEGRATED WATER SERVICE OPERATORS

One of the most established methods of achieving sludge reduction is The process results in a reduction of about 30-35% of the total slu- anaerobic digestion: at a temperature of about 38 °C and in the ab- dge mass entering the treatment, enabling an easier and less expen- sence of oxygen, a bacterial strain is naturally selected from the sludge sive management of the sludge to be disposed of, and a production mass consisting of anaerobic micro-organisms capable of transforming of about 35 Sm3 of methane for each tonne of sludge, with a conse- the starting organic substance (carbohydrates, fats and proteins) into quent energy benefit.

a mixture of methane (CH4) and carbon dioxide (CO2), called biogas. Recently, a significant financial benefit was added linked to incentian - ve127 that rewards the transformation of biogas into biomethane and its subsequent use in motor vehicles, in compliance with strict sustainabi- anaerobic anaerobic T = 38° C lity constraints that must be certified by a third party. bacteria bacteria zero oxygen The process of transforming biogas into biomethane is called upgra- carbohydrates fats proteins ding, at the end of which the product obtained is almost completely

free of substances other than methane (CH4 at about 98%), in par- ORGANIC ticular carbon dioxide, present in the biogas of origin. It is eliminated along with other undesirable substances by filtration through special selective membranes. The biomethane is suitable to be injected into the natural gas distribu- sugars fatty acids polypeptides tion network. Acea Ato 2 is about to start the production of biomethane for upgrading biogas already available in the treatment plants in East Rome and North DIGESTION ANAEROBIC volatile acids alcohol Rome, with a total annual production of about 2.5 million Sm3 and a corresponding abatement of about 25,000 tonnes/year of sludge. In this perspective, the executive design phase of the two upgrading plants has already been completed, allowing the start of the qualifica- tion process at Gestore Servizi Energetici (GSE), the Public Body re- methane carbon dioxide sponsible for the proper management of the incentive, and the (50-80%) (50-20%) publi-

BIOGAS shing of calls for tenders for the construction of technological works, including those necessary for the interconnection of the biomethane produced with the natural gas distribution network.

Among the many actions carried out by Acea Ato 2 aimed at weather events, in 2019, 16 studies were completed that in- mitigating the effects of parasitic waters128 in the sewerage sys- volved the verification of about 800 km of sewerage system tem and improving the resilience of the systems to exceptional present in the managed territory.

127 With Ministerial Decree of 2 March 2018, which encourages the production of biomethane from the treatment of waste materials (sewerage sludge but also the organic fraction of municipal waste), Italy aligned itself with the requirements of the objective of the European directive called RED II – i.e. the Renewables Directive 2018/2001/EU repealing Directive 2009/28 – RED I: achieve a share of gross final energy consumption in the transport sector covered by RES of at least 14% (of which advanced biofuels > 0.2% by 2022, > 1% by 2025, at least 3.5% by 2030). 128 Parasitic waters are those that can enter the sewerage system and represent a component that does not conform – in terms of quality and/or quantity – to the size of the sewerage system. They can be from weather, surface water, groundwater, man-made (aqueduct losses, illicit connections, etc.).

190 ACEA GROUP / SUSTAINABILITY REPORT 2019 THE USE OF MATERIALS, ENERGY AND WATER

ENERGY EFFICIENCY ENHANCEMENT: IN ARETI ABOUT APPROXIMATELY 424 GWh of electrical 1.4 GWh OF SAVINGS PER YEAR AND 500 t OF CO2 consumption OF THE COMPANIES OF THE GROUP NOT EMITTED, IN ACEA ATO 2 ABOUT 4 GWh OF SAVINGS FROM G.O.-CERTIFIED renewable energy PER YEAR AND 1,400 t OF CO2 NOT EMITTED

process, as it is used in medium and high voltage transformers for CONSUMPTION OF MATERIALS its insulating, electrical and thermal power. Table no. 56 shows the main materials used in the different pro- duction processes by the Companies of the Group. For compa- The Water Companies, on the other hand, use chemical products nies in the Environment segment, the most important resources in their activities, such as reagents for the purification, disinfection are incoming waste for the production of compost and electricity and purification of waste water. Please refer to the environmental (pulper and SRF waste-to-energy). In Acea Produzione, thermo- accounts for further information on the resources used for each electric plants use combustible fossil fuels (natural gas and diesel) area of reference. Finally, Acea Energia and the water companies for the production of electrical energy. For Areti, sulphur hexaflu- responsible for the management of commercial aspects use paper oride (SF6) is a primary component of the electricity distribution for billing customers.

TABLE NO. 56 – CONSUMPTION OF MATERIALS BY THE MAIN COMPANIES IN THE GROUP (2017-2019) materials m.u. 2017 2018 2019 incoming waste t 144,747 119,857 153,330 pulper t 99,970 99,971 94,092 SRF t 45,639 357,174 340,531 methane Sm3 x 1,000 15,965.6 21,420.2 23,703.0 diesel fuel l 864,520 230,350 574,405

SF6 t 29.8 21.7 21.9 miscellaneous chemicals t 10,746 10,782 14,581 paper t n.a. 319 342

NOTE Data on incoming waste includes waste sent for anaerobic and aerobic treatment at the Orvieto landfill and waste processed for the production of compost (sludge, green, OFMSW and other agri-food waste). Pulper and SRF for waste-to-energy are resources with a renewable component linked to the biodegradable fraction of the waste. In 2019 the share of renewable and biodegradable pulper was about 47%, while that of SRF was about 51%. The increase in the use of water resources is mainly due to extraordinary maintenance planned on the purification areas. The data for paper are related to the billing of the Companies Acea Energia, Acea Ato 2, Acea Ato 5, Gori, Gesesa.

ENERGY CONSUMPTION energy, and the contraction in consumption for public lighting, equal to 17%, related to the replacement of traditional lamps THE GROUP’S ENERGY CONSUMPTION with LED systems. Total direct and indirect energy consumption amounted to It should also be pointed out that, for the third year running, the about 12,000 TJ, a slight decrease of 5% compared to 2018, electricity consumption of the main companies, in particular mainly due to the decrease in direct consumption at San Vittore consumption linked to waste management plants, the distribution del Lazio (see table no. 57). Indirect consumption, on the other of drinking and non-drinking water, purification and consump- hand, increased by 5%, in consideration of the consumption as- tion for the work sites, for a total of approximately 424 GWh, sociated with the plants acquired by Gori, previously managed was certified as coming from renewable sources (certification by by the Campania Region. The data shown in table no. 59 show means of the Guarantees of Origin – GOs) (table no. 58). the slight reduction of the losses of the electricity distribution Trends in energy consumption intensity indices are shown in grid, attributable to the transformation and transport phases of table no. 59.

RELATIONS WITH THE ENVIRONMENT 191 TABLE NO. 57 – DIRECT ENERGY CONSUMPTION OF THE MAIN COMPANIES IN THE GROUP (2017-2019) 2017 2018 2019 ENERGY PER SOURCE TJ (GWh) RDF/SSF and pulper (waste-to-energy) – renewable share(*) 3,638.0 (1,010.6) 3,665.5 (1,018.2) 3,283.0 (911.9) biogas (100% renewable – waste management and water segment)(**) 207.2 (57.6) 206.3 (57.3) 243.9 (67.7) RDF/SSF and pulper (waste-to-energy) – non-renewable share (*) 3,584.6 (995.7) 3,857.6 (1,076.6) 3,280.8 (911.3) methane (for electricity generation, district heating, water area dryers and 732.0 (203.3) 965.6 (268.2) 1,077.0 (299.2) heating for offices(***) PG (heating) 0.8 (0.2) 0.2 (0.1) 0.7 (0.2) diesel (for electricity generation and other uses, composting plants) 48.4 (13.4) 22.8 (6.3) 38.1 (10.6) petrol (road haulage) 3.0 (0.8) 3.5 (1.0) 3.8 (1.1) diesel (road haulage) 129.6 (36.0) 124.4 (34.6) 109.1 (30.3) total 8,343.5 (2,317.7) 8,863.9 (2,462.2) 8,036.4 (2,232.3)

(*) The figures for 2018 were adjusted due to a mistake in the calculations. (**) The figures for 2018 were adjusted to also include biogas produced and consumed at the anaerobic digesters of Acea Ato 2 and Gori. (***) The figures for 2018 have been restated to include Gori’s consumption. NOTE The energy produced by the Group plants and fed into the network is illustrated in the Environmental Accounts (Products – Energy Segment).

TABLE NO. 58 – INDIRECT ENERGY CONSUMPTION OF THE MAIN COMPANIES IN THE GROUP (2017-2019) 2017 2018 2019 TYPES OF INDIRECT CONSUMPTION TJ (GWh) electrical energy losses on the distribution networks and transport 1,244.9 (345.8) 1,204.6 (334.6) 1,188.4 (330.1) losses and self-consumption in the production of electrical energy(*) 232.5 (64.6) 245.5 (68.2) 233.1 (64.8) losses of heat in the district heating network 72.5 (20.1) 104.1 (28.9) 109.7 (30.5) consumption for public lighting 416.3 (115.6) 302.3 (84.0) 252.3 (70.1) electrical consumption for waste management plants(**) 27.5 (7.7) 28.5 (7.9) 31.2 (8.7) electricity consumption for distribution of drinking water(*) (***) 1,252.2 (347.8) 1,161.7 (322.7) 1,356.1 (376.7) electricity consumption for effluent purification(*) (***) 712.8 (198.0) 751.0 (208.6) 817.4 (227.1) consumption of electrical energy for the offices(**) 36.1 (10.0) 34.8 (9.7) 32.4 (9.0) total indirect energy consumption 3,994.9 (1,109.6) 3,832.6 (896.6) 4,020.6 (1,117.0)

(*) The figures for the two-year period 2017-2018 have been restated to include those of Gori to make them comparable. (**) Energy with GO certification (Guarantee of Origin). (***) 68% of the energy used is GO-certified. (Guarantee of Origin).

TABLE NO. 59 – ENERGY INTENSITY INDICES (2017-2019) ENERGY CONSUMPTION INTENSITY INDEX m.u. 2017 2018 2019 electrical energy consumed for public lighting per lamp (*) TJ/lamp 0.0019 0.0013 0.0011 total electrical energy consumed by Acea Ato 2, Acea Ato 5, Gori TJ/Mm 3 4.3783 4.3124 4.8639 and Gesesa for water supplied (**) electrical energy consumed by Acea Ato 2, Acea Ato 5, Gori and Gesesa for sewer service per km of sewer network TJ/km 0.0144 0.0168 0.0148

(*) The decrease in the intensity index is due to the 17% decrease in consumption for public lighting, thanks to the completion of the replacement of lamps with LED lamps. (**) The increase in electricity consumption for water delivered in 2019 compared to the previous two years is mainly due to the increases in electricity consumption in Gori, since in 2019 it acquired the management of several plants previously owned by the Campania Region.

ENERGY CONSUMPTION OUTSIDE OF THE GROUP the Gestore dei Servizi Energetici (GSE) for the awarding of Energy Since 2015, Acea has been monitoring energy consumption outside Efficiency Certificates (TEE). the Group along the supply chain using specific questionnaires. In De- As at 31.12.2019, the plants managed by Ecogena received 7,591 TEEs cember 2019 the questionnaire was sent to 117 suppliers, the most rep- under the Ministerial Decree of 5 September 2011, of which 954 re- resentative in relation to the orders value for the year. Thanks to the lated to 2018 production (and finalized in 2019) (see table no. 48). results from 40 of those contacted (equal to 32% of the total Acea ex- To make it possible for Areti to achieve its energy savings goal, the ac- penditure for the procurement of goods/services and works), their total tions of the year were focused on the purchase of EECs on the market energy consumption was estimated at approximately 298,043 GJ. managed by the electricity market operator (EMA) equal to 122,369 EECs, to which is added the residual portion of the 2018 obligation equal to 89,073 EECs with respect to the initial 111,348 EECs, and the ENERGY SAVING residual portion relating to the 2017 obligation equal to 14,132 EECs.

As noted, Ecogena is the appropriate body to develop the energy effi- ENERGY EFFICIENCY ACTIONS ciency initiatives of the Group Companies and report their results to Acea, during the year in question, carried out various schemes for

192 ACEA GROUP / SUSTAINABILITY REPORT 2019 the recovery of energy efficiency in the managed processes, in water loss recovery, a value of 3.9 TJ (1.09 GWh) was quanti- particular in the Companies engaged in the Water, Energy Infra- fied, referring to the area of Rome. structure and Environment segments. In Acea Ato 5 the efficiency improvements equal to about 2.4 TJ In 2019, for the Water industrial segment, despite the numer- (0.68 GWh) were related to the installation of pressure meters, ous efficiency initiatives described below, there was anincrease inverters and level probes. in electricity consumption equal to 13% compared to 2018, Gori carried out efficiency projects mainly related to the division of mainly due to the new acquisitions of plants by Gori129 and the the water network into districts and the installation of inverters, for launch of other infrastructure by Acea Ato 2, including: the a total of 2 TJ (0.6 GWh) saved. Grottarossa drinking water plant130, the new departments in the Gesesa’s consumption, in absolute value, decreased by about 3.6 Roma Nord treatment plant (such as anaerobic digestion and TJ (1 GWh) compared to 2018. Moreover, increased efficiency thermal drying of sludge) and the ozonolysis of sludge at the and revamping initiatives are under way for the plants, with the Ostia treatment plant. The energy efficiency measures carried installation of more energy-efficient equipment also from an en- out by the Companies on ordinary activities partly offset the ergy point of view. overall increase in consumption. In this regard, Acea Ato 2 achieved a total savings of 9.3 TJ In the Energy Infrastructure segment, during the year Areti con- (2.59 GWh) in 2019, against an expected annual energy sav- tinued several efficiency improvement projects on the managed ings target of 4.7 TJ (1.3 GWh). More specifically, with regard electricity distribution grid: to the water sector, through significant interventions aimed • the use of 344 MV/LV transformers with very low loss- at the recovery of the resource, about 2 TJ (0.56 GWh) of es, which allowed a reduction in electricity consumption of electricity was saved thanks to efficiency works on five valves 404 MWh; of a pumping group of the Ceraso plant, while with regard to • other interventions on the HV/MV/LV distribution network the purification sector there was an energy efficiency of about aimed at optimising the structure of the MV network and oth- 3.4 TJ (0.93 GWh) through interventions to optimize the er adjustments for the HV and LV lines, for 946 MWh saved. oxidation sector of the Fregene, Palmarola and other minor Table no. 60 shows the type of work and the related energy savings plants (purification plants of: Reotula, Montelungo, Vignacce, of Areti for the last three years. These efficiencies have ledin 2019 Grottoni and Santa Severa). Regarding the efficiency improve- to overall energy savings of about 5 TJ (1.4 GWh) and about 500 ments related to the consumption of electricity avoided for tonnes of CO2 avoided.

TABLE NO. 60 – ENERGY EFFICIENCY IN ARETI (2017-2019)

ENERGY SAVINGS ACHIEVED (GJ) action 2017 2018 2019 reduction in losses from the grid 24,959 25,200(*) 4,860(**) of which reduction in losses through the purchase of new transformers 662 1,112 1,454 transformation of air conditioning and domestic hot water production system - 47 94 into heat pumps (*) Value measured after a detailed study of the grid. (**) Value estimated while awaiting the detailed study of the grid.

In 2019 consumption for public lighting fell to about 70 GWh Areti monitors the average and maximum travel of vehicles on (252 TJ) (115.6 GWh and 416.2 TJ in 2018), mainly due to the a daily basis, the specific consumption in km/kWh, the bat- installation of LED technology lamps: from 172,971 in 2017 to tery use and the amount of CO2 not emitted. The monitoring 205,670 in 2019, out of a total of 225,730 lamps. activity has found: a total of about 65,000 km of travel cor- responding to electricity consumption of about 10,000 kWh

A further positive contribution was provided by the 25 electric and savings of about 6,200 kg of CO2, net of emissions from vehicles in use and shared by the Company’s staff. the energy consumed.

CHART NO. 52 – CAR SHARING DATA (2019) zero em users eet km no. of i ss registered active travelled trips ions 183 25 65,038 3,246

129 Since February 2019 Gori has acquired the management of: a well field in Angri, regional plants in the Sarnese area including the large plants of Santa Maria La Foce and Santa Marina di Lavorate (Sarno); regional plants in the Monti Lattari and Sorrento Peninsula area including the Sepolcri Water Plant (Gragnano). Also acquired during the year were the purification plant in Bosco Fangone (Nola) and the related supply lifts and the purification plant in Nocera (Nocera). 130 In addition to the start of the new Grottarossa drinking water plant, the Cecchina Bis plant was used on an ordinary basis. Until 2018 it was used occasionally as a reserve, then from the end of 2018 on an ordinary basis to no longer use the previous reserve of Lake Bracciano.

RELATIONS WITH THE ENVIRONMENT 193 Finally, in the Environment segment, in 2019 some energy effi- Terni plants, and since 2019 the latter has two rainwater collection ciency improvements continued at the San Vittore del Lazio plant, tanks equipped with a filtration system and storage tanks.Aprilia’s which were launched in 2018. In particular, in 2019 the project composting plant has a system for the treatment of residual water 131 consisted in creating a new “configuration” for the DeNOx plant from waste awaiting processing for reuse in production processes, of line 3, with the reprogramming of the quantities of natural gas and at the San Vittore del Lazio waste-to-energy plant rainwater (and ammonia solution) necessary to reduce nitrogen oxides, both is used in the production of demineralized water, after treatment with positive repercussions on consumption132. in a specific chemical-physical plant. Finally, theOrvieto plant hub collects rainwater through the roofs of some buildings, keeps it in underground storage tanks and then uses it in the compost maturation and storage phases. Thanks to the presence of these ATTENTION TO WATER solutions at the plants, the volume of water recovered from the CONSUMPTION Environment Segment was around 27,000 m3. In order to promote the reuse of purified wastewater,Acea Ato For Acea, the rational use of water is a fundamental prerequisite 2 completed the revamping of the COBIS plant during the year in the conduct of its business, therefore all Companies are com- and began work to modernize the industrial network (non-potable mitted to optimising its use and seeking recovery and recycling water) connected to the purification plant in South Rome. solutions, with a view to circular economy and resource protection. The water consumption of the Group, illustrated in table no. 61, The main water consumption is related to production processes, refers both to industrial processes and civil uses133. The increase in such as the production of thermal energy at the Tor di Valle plant, consumption in 2019 is particularly attributable to the users of the that of electrical energy at the waste-to-energy plants and the purification plants in South Rome and East Rome. In fact, at the production of compost. Furthermore, water is also used in labora- purification plant in South Rome the startup of a new digestion de- tory activities, albeit in small quantities. Finally, water is an integral partment for the processing of organic sludge and the treatment part of purification activities, in particular in plants equipped with systems of the emission points led to an increase in the use of the anaerobic digesters. resource. At the purification plant in East Rome, on the other The Companies in the Environment segment limit the consump- hand, due to critical issues related to the industrial network it was tion of drinking water, mainly using water from wells (including for necessary to increase the use of water from the aqueduct. In this civil uses, after sanitisation). In addition, rainwater recovery sys- case as well in 2019 interventions for the renovation of the network tems are active at the San Vittore del Lazio, Orvieto, Aprilia and were identified and planned.

TABLE NO. 61 – WATER CONSUMPTION OF THE GROUP’S MAIN COMPANIES (2017-2019)

2017 (*) 2018 (*) 2019 TYPE OF CONSUMPTION (Mm3) industrial processes (district heating, thermoelectric generation, Acea Ambiente plants, 0.967 0.324 0.334 Water companies) of which aqueduct (**) 0.896 0.243 0.236 of which well 0.060 0.053 0.067 of which river water (***) 0.003 0.003 0.003 of which recovered water 0.005 0.025 0.027 water consumption for civil use (****) 1.434 1.723 2.059 total water consumption 2.401 2.046 2.393

(*) The volumes for 2017 and 2018 were restated and also include the figures for the Gori Company, which entered the scope in 2019. (**) The item includes the water brought to the Aprilia plant through tankers (about 465 cubic meters in 2019). (***) Consumption refers exclusively to the withdrawal from the Paglia river near the Orvieto composting plant. (****) Civil consumption derives from: aqueduct (99.9%), well, tankers.

131 The DeNOx system is the system for the reduction of nitrogen oxides (NOx) that uses a conversion reaction with ammonia, generating nitrogen. 132 In 2019, the savings of methane thanks to these interventions were more than 700,000 Sm3. 133 Civil uses for the two-year period 2018-2019 also include the consumption of Acea Ato 2, which uses water in some water service management and purification activities. At the moment it is not possible to estimate purely industrial and civil uses.

194 ACEA GROUP / SUSTAINABILITY REPORT 2019 EMISSIONS

continuous analysis of emissions emissions intensity index from waste-to-energy plants: (scope 2) from network leaks out of the total values of polluting agents markedly lower distributed electrical power improved: than legal limits 0.0112 t/MWh

increasing performance from the emission quality viewpoint. AIR EMISSIONS The waste-to-energy plants, managed according to the UNI EN ISO 14001 and OHSAS 1800:2007 standards, are reg- Atmospheric emissions from Acea plants are constantly moni- istered according to the European EMAS III scheme, extend- tored. In particular, in the waste-to-energy plants it is carried out ed until 2021. In particular, at the San Vittore del Lazio plant by means of fixed and mobile stations that sample and analyse persistent pollutant monitoring (POP) was conducted in 2019 the fumes coming out of the chimneys, measuring numerous to verify the current state of soil contamination levels. Other parameters that are periodically checked by internal personnel actions carried out include surveys of odorous emissions, the and certified by qualified external laboratories. Again in 2019, monitoring of diffuse and fugitive emissions, an assessment of the values of the main pollutants were also significantly below external noise impacts and an epidemiological study on the the legal limits (see table no. 62). The principle of precaution population concerned aimed at detecting possible effects on still applies, as well as seeking out technological solutions with public health. No critical issues were identified.

TABLE NO. 62 – AIR EMISSIONS FROM THE SAN VITTORE DEL LAZIO AND TERNI WASTE-TO-ENERGY PLANTS (2017-2019) San Vittore del Lazio plant(*) Terni plant(*) pollutant m.u. benchmark(**) 2017 2018 2019 benchmark(**) 2017 2018 2019

HCl mg/Nm3 8 0.053 0.184 0.151 8 4.002 4.499 3.580

NO mg/Nm3 70 18.089 28.273 29.652 180 134.274 140.157 x 128.650 3 SO2 mg/Nm 40 0.014 0.006 0.003 25 0.490 0.194 0.430 HF mg/Nm3 1 0.011 0.021 0.023 1 0.122 0.084 0.080 CO mg/Nm3 40 1.447 1.320 0.803 25 1.018 1.084 1.140 total particles 3 (particulate matter) mg/Nm 3 0.006 0.006 0.007 25 0.678 0.705 0.790 PAH (polycyclic aromatic mg/Nm3 0.01 0.00001 0.00002 0.00001 0.01 0.0001 0.0001 0.0000 hydrocarbons) dioxins and furans 3 (PCDD +PCDF) ng/Nm 0.1 0.0047 0.0065 0.0074 0.1 0.0173 < 0.001 0.0087 heavy metals (Sb, As, Pb, Cr, Co, mg/Nm3 0.5 0.0262 0.0253 0.0387 0.3 0.109 0.204 0.033 Cu, Mn, Ni, V) (*) The analysis of PAH, dioxins and furans and heavy metals and their composites are four-monthly and discontinuous. The “<” symbol identifies the concentration values that are equal to or below the thresholds that the devices used by the laboratory are capable of measuring. (**) Reference parameters, Legislative Decree no. 46/2014, 2000/76/EC and AIA, are separate for each waste-to-energy plant. NOTE For San Vittore del Lazio, over the years the recorded concentrations of the parameters HCl, SO2, dust and HF were close to the instrument’s detection limit. Therefore, in these measurement areas deviations are to be considered insignificant for absolute changes in concentrations and masses.

GREENHOUSE GAS EMISSIONS Acea quantifies its CO2 emissions by assessing the carbon foot- The international document Greenhouse Gas Protocol (or GHG print of individual macro production processes according to the Protocol) classifies greenhouse gas emissions into three types: guidelines of the GHG Protocol134. Indeed, as mentioned above, • Scope 1 emissions: direct greenhouse gas emissions; it participates in the annual completion of the international ques- • Scope 2 emissions: indirect greenhouse gas emissions; tionnaire on carbon dioxide emissions, the so-called “CDP”. • Scope 3 emissions: other indirect greenhouse gas emissions. Direct Scope 1 emissions mainly come from the Group’s energy

134 See www.ghgprotocol.org for more information.

RELATIONS WITH THE ENVIRONMENT 195 plants and thermoelectric power plants. They also include emissions the movements of employees. In particular, Acea distributes from the heating process, dryers, certain processes in composting a questionnaire to know emissions along the supply chain. In plants, vehicles in the fleet (with reference to petrol and diesel en- 2019 the questionnaire was administered to 117 suppliers135

gines) and lastly from sulphur hexafluoride (SF6) losses that can oc- divided between suppliers of “goods”, “services and works”. cur at Areti plants and from freon gases in air conditioners. Quantitative environmental information requested refers to:

The figure for CO2 emitted by the waste-to-energy plants in 2019 fuels consumed for any ordinary processes and uses, ener- decreased, mainly due to lower production at San Vittore del Lazio gy consumed in offices, fuels consumed for transport and any related to maintenance delays. consumption of refrigerant gases (see the sections on Energy Scope 2 greenhouse gas emissions are indirect, deriving from the consumption outside the Group and Greenhouse gas emissions and consumption of electricity and also kept under control. In 2019 the also the chapter on Suppliers). This year, 40 suppliers respond- increases mainly depended on Gori’s acquisition of the plants pre- ed with environmental data, including 12 for “goods” and 28 for viously managed by the Campania Region. “services and works”. Finally, Scope 3 greenhouse gas emissions are other indirect emis- sions deriving from the sale of gas, the purchase of goods, services Three Group plants, specifically the waste-to-energy plant in Terni and works, from employee travel for work and commuting by em- and the thermoelectric plants in Montemartini and Tor di Valle, are ployees are reported (see table no. 65 below). subject to the Emission Trading Scheme (ETS). The allowances With regard to Scope 3 emissions, Acea has been monitor- assigned under the NAP (National Allocation Plan) framework, ing its suppliers for some years now, so that they are aware of in compared to the actual emissions registered in the three-year the environmental impact and estimates the data relating to period 2017-2019, are shown in table no. 63.

TABLE NO. 63 – CO2 EMISSION ALLOWANCES AS PER THE NATIONAL ALLOCATION PLAN (NAP) AND ACTUAL EMISSIONS BY PLANT (2017-2019)

2017 2018 2019 system (t) assigned assigned assigned actual actual actual by NAP by NAP by NAP Tor di Valle(*) 6,869 33,507 5,805 42,281 4,775 46,617(**) Montemartini 0 2,278 0 607 0 1,514 Terni waste-to-energy plant 0 118,653 0 114,093 0 109,369 (**)

(*) As with previous years, in 2019 the applicable legislative framework allowed the Tor di Valle plant to benefit from free of charge emission allowances (4,775 t) as it serves a remote heating network. The 2018 figure for actual emissions has been adjusted with the certified figure. (**) Estimated emissions, pending certification by the responsible body.

INTENSITY INDICES FOR GREENHOUSE GAS With regard to other atmospheric emissions, and in particu- EMISSIONS lar to the most significant macro-pollutants due to the main One of the monitored intensity indices for greenhouse gas production processes of Acea Ambiente and Acea Produzi- emissions (see table no. 65) concerns Scope 2 carbon diox- one plants, see the summary data in table no. 64. They show

ide emissions, deriving from leaks in the electricity distribu- a substantial decrease after 2017 in NOx (nitrogen oxide) tion network, in respect to the total electricity distributed. thanks to the transformation of the Tor Di Valle plant from a This index has improved further, changing from 0.0113 t/ combined cycle to a high-efficiency plant (CAR). The other MWh in 2018 to 0.0112 t/MWh in 2019, in line with the data is in line with the previous values and continues to be continuous decrease in relative leaks in the network (techni- monitored. cal leaks/distributed electricity).

TABLE NO. 64 – ENVIRONMENTAL INDICATORS: CO2 EMISSIONS, GREENHOUSE GAS INTENSITY INDICES AND VEHICLE EMISSIONS (2017-2019)

2017 2018 2019 EMISSIONS (t) CO 6.81 6.38 7.02

NOx 198.20 189.40 188.19

SOx 0.42 0.16 0.33 particles (particulate matter) 0.55 0.50 0.60

NOTE The emissions refer to the following companies. Monitoring carried out on installations at risk136 has shown the ab- ble for reducing the ozone layer (for consumption see the Environ- sence of emissions in significant quantitiesof substances responsi- mental accounts, Resources used).

135 The suppliers to whom the form was sent requesting data concerning the consumption of electricity and CO2 emissions (in order to quantify the Group’s Scope 3 type emissions) were identified, as was already done in the past three years, among the most relevant in terms of turnover. 136 This is primarily air conditioning equipment using refrigerant gases subject to the 1987 Montreal protocol, particularly chlorofluorocarbons.

196 ACEA GROUP / SUSTAINABILITY REPORT 2019 TABLE NO. 65 – ENVIRONMENTAL INDICATORS: CO2 EMISSIONS, GREENHOUSE GAS INTENSITY INDICES AND VEHICLE EMISSIONS (2017-2019)

CO2 EMISSIONS

SCOPE 1 EMISSIONS

FROM ENERGY PRODUCTION PLANTS

m.u. 2017 2018 2019

CO2 emissions from Acea Produzione thermoelectric plants t 33,507 42,888 48,131

(*) CO2 emissions from Acea Ambiente waste-to-energy plants t 375,159 307,395 290,591 FROM WASTE MANAGEMENT, ENERGY DISTRIBUTION, HEATING PLANTS AND VEHICLE FLEET

(**) CO2 emissions from waste management plants t 932 1,076 1,282

(***) CO2 emissions from water plant dryers t 2,901 3,958 5,620

(***) CO2 emissions from heating t 1,008 764 840

CO2 emissions from vehicle fleet t 9,753 9,407 8,314

(****) CO2 emissions from Areti plants (from SF6) t 14,100 11,233 9,682

(*****) CO2 emissions from refrigerants (HCFCs) t - 46 0 TOTAL SCOPE 1 EMISSIONS(******) t 437,360 376,767 364,460

SCOPE 2 EMISSIONS CO emissions from location based consumption of electricity 363,678 337,858 354,811 2 t consumption (market based)(*******) (214,869) (203,841) (228,590)

SCOPE 3 EMISSIONS CO emissions deriving from the purchase of goods/services 2 t 24,134 22,805 22,303 and works(********)

CO2 emissions from commuting t 3,286 4,088 7,060

CO2 emissions from business travel t 152 160 288

CO2 emissions from volumes of gas sold t 203,085 252,987 275,580 INTENSITY INDICES FOR GREENHOUSE GAS EMISSIONS

intensity indices of the GHG emissions m.u. 2017 2018 2019

CO2 emissions (Scope 1 + Scope 2)/Acea Group added value (t/k€) 0.809 0.666 0.598

(*********) Scope 1 CO2 emissions/gross production (g/kWh) 487.7 361.7 374.6 Scope 2 CO emissions deriving from losses on the electrical energy 2 (t/MWh) 0.0115 0.0113 0.0112 distribution network/distributed GWh(*********)

(*) The 2018 figure for Terni was corrected after the ETS certification, while the 2019 figure is estimated pending certification by a third-party body. (**) The figure includes the emissions of the ancillary services of the waste-to-energy plants, not strictly related to the production of electricity, and since 2018 non-biogenic emissions from the combustion of locally produced biogas. (***) The figures for 2017 and 2018 have been restated to include Gori and to align the figures with the items in the Environmental Accounts. (****) These are the tonnes of equivalent CO2 corresponding to the emissions of insulating SF6 present in Areti’s HV equipment (1 t di SF6 equates to 23,500 t of CO2, GHG Protocol-5th Assessment Report- AR5). (*****) In 2019 the replenishment of HCFC fluids in the Group’s plants was so small that it did not lead to significant 2CO emissions. (******) Considering the entire Group, the total scope 1 emissions for the three-year period are as follows: 439,353 t, 378,671 t and 366,371 t. (*******) The indirect emissions (scope 2) include all the Companies within the NFS scope. The figures for 2017 and 2018 have been restated to include Gori. As an emission factor per unit of electricity consumed (t CO2/MWh), for the location-based calculation the value of 0.36 was used, as per Terna’s “International comparisons” document (2018 data). For the calculation of Scope 2 emissions using the Market-Based method, the Residual Mix coefficients are respectively for 2017, 2018 and 2019: 0.465 t/MWh, 0.476 t/MWh and 0.487 (Source: AIB document “European Residual Mixes 2018”). Considering the whole Group, including the companies Umbra Acque, AdF, Publiacqua e Acque (outside the NFS scope), for the sole proprietary quota part of Acea, for the three-year

period 2017-2019, di Location based CO2 emissions are equal to 415,853 t, 390,552 t and 407,086 t respectively, whereas for the Market-based emissions they are equal to 282,262 t, 272,502 t and 298,856 t. (********) This value, estimated, refers to suppliers of goods, services and works. The figure for 2018 was corrected. The 2019 figure is broken down as follows: 19,050 tonnes of CO2 for suppliers of services and works and 3,253 tonnes of CO2 for suppliers of goods. (*********) Since 2018, the emissions of scope 1 included in this index have been emissions from power generation plants. (**********) Network losses considered for Score 2 emissions and for calculating the indicator regarding the three-year period 2017-2019, are as follows: 124,479 t, 120,450 t and 118,824 t (due to the technical leakage of electricity from the network). The trend has decreased, albeit minimally, thanks to the reduction of network losses, the result of interventions, measures and efficiency improvements. NOTE Emission factors for Scope 1 emissions are taken from the standard parameters – ISPRA data 2018, DEFRA 2018 and GHG Protocol-5th Assessment Re- port- AR5.

RELATIONS WITH THE ENVIRONMENT 197 WATER COMPANIES DATA SHEETS AND OVERSEAS ACTIVITIES This chapter illustrates activities and provides information and environ- lowed the criteria specified by ARERA with Resolution mental accounts data for the main companies of the Group outside 917/17 R/IDR. the scope of the consolidated non-financial statement (see Disclosing Sustainability: methodological note). The first part concerns the Com- UMBRA ACQUE panies operating in the water sector in Umbria and Tuscany137, consol- Umbra Acque SpA is a company with predominantly public idated using the equity method in the statutory financial statements, capital, 40% owned by Acea SpA, which since 2003 has man- and the second part refers to companies that are active abroad. aged the integrated water service in the area of Optimal Terri- torial Conference – Umbria 1 consisting of 38 municipalities, WATER ACTIVITIES IN UMBRIA of which 37 in the province of Perugia and 1 in the province of AND TUSCANY Terni, with a total population of over 500,000 inhabitants. For the preparation of water balances, the Companies fol-

HUMAN RESOURCES IN FIGURES UMBRA ACQUE EMPLOYEES: BREAKDOWN OF HUMAN RESOURCES (2018-2019) (no.) 2018 2019 men women total weight % men women total weight % executives 4 0 4 1.1 4 0 4 1.1 managers 9 2 11 2.9 6 2 8 2.1 clerical workers 72 75 147 39.1 70 81 151 40.4 workers 214 0 214 56.9 211 0 211 56.4 total 299 77 376 100.0 291 83 374 100.0

UMBRA ACQUE EMPLOYEES: CONTRACT TYPE (2018-2019) (no.) 2018 2019 men women total men women total staff with permanent contract 255 51 306 251 63 314 (of which) part-time staff 2 6 8 2 6 8 permanent staff 36 24 60 29 17 46 staff under apprenticeship contracts 8 2 10 11 3 14 total 299 77 376 291 83 374

INDUSTRIAL ACCIDENTS AND FREQUENCY AND SEVERITY INDICES (2018-2019)(*) 2018 2019 accidents (no.) 19 9 total days of absence 818 554 hours worked 615,479 689,112 frequency index (FI) (number of accidents per 1,000,000/working hours) 30.87 13.06 severity index (SI) (days of absence per 1,000/working hours) 1.33 0.80

(*) The data have been estimated.

COURSES AND TRAINING COSTS IN UMBRA ACQUE (2018-2019) course type courses (no.) editions (no.) training (hours) costs (€) 2018 2019 2018 2019 2018 2019 2018 2019 advanced training 1 2 1 2 4 25 2,600 0 technical-specialized 62 72 87 92 3,561 4,011 71,714 46,438 legal 6 5 6 5 92 71 8,384 1,396 managerial 10 7 15 7 1,016 202 27,307 4,593 safety 16 24 39 71 1,366 4,331 13,240 46,600 total 95 110 148 177 6,039 8,640 123,245 99,027

137 AdF, which joined the scope of consolidation on a line-by-line basis in October, has not been included in the 2019 NFS but is considered to be the same as the other investee Water Companies.

198 ACEA GROUP / SUSTAINABILITY REPORT 2019 TRAINED EMPLOYEES (2018-2019) (no.) 2018 2019 men women total men women total 182 64 283 282 66 348

NETWORK AND PLANT CONSISTENCY WATER SYSTEM MANAGED BY UMBRA ACQUE (2017-2019) 2017 2018 2019 water network (km) 6,071 6,124 6,315 aqueducts and transport networks (km) 1,363 1,388 1,372 distribution network (km) 4,708 4,736 4,943 well intake structures (no.) 222 219 219 spring intake structures (no.) 289 285 283 river intake structures (no.) 2 2 2 pumping stations (no.) 250 261 262 piezometers (no.) 1 1 1 reservoirs (no.) 587 587 592 disinfection/treatment plants (no.) 250 250 270

PURIFICATION AND SEWERAGE PLANTS MANAGED BY UMBRA ACQUE (2017-2019) 2017 2018 2019 purification plants (no.) 117 114 149 sewerage pumping stations (no.) 216 223 244 sewerage network (km)(*) 3,543 1,620 1,685

(*) The significant change starting from 2018 is attributable to the different way in which data are recorded using the GIS geographical information system.

CERTIFICATIONS Umbra Acque has an Integrated Quality, Environment and Safe- In 2019 the Company successfully passed the audit for the renew- ty Management System (QAS) in compliance with the UNI ISO al of the certification of its Environment and Safety Management 9001:2015, UNI ISO 14001:2015 and BS OHSAS 18001:2007 Systems. Furthermore, the Laboratory for analyses extended its standards , SOA certification for the OG6 (in class II) and OS22 accreditation, compliant with the UNI ISO/IEC 17025:2005 (in class III) categories and qualification for design and construc- standard, to both chemical tests and those for aqueous substances, tion (up to the 8th classification). reaching a total of 96 accredited tests.

ENVIRONMENTAL ACCOUNTS PRODUCTS AND ANALYTICAL TESTS m.u. 2017 2018 2019(*) ∆% 2019/2018 WATER BALANCE drinking water from the environment Mm3 59.84 60.06 58.13 -3.2 from the surface Mm3 0 0 0 - from wells Mm3 46.85 46.05 44.30 -3.8 from springs Mm3 11.78 12.64 11.22 -11.2 of which water from other aqueduct systems Mm3 1.21 1.37 2.61 90.5 total drinking water leaving the aqueduct system (c) = (a+b) Mm3 29.36 29.71 30.51 2.7 total drinking water dispensed and billed in the network (a) Mm3 28.20 28.72 29.50 2.7 measured volume of water delivered to users Mm3 28.20 28.72 29.50 2.7 volume consumed by users and not measured Mm3 0 0 0 - total drinking water authorized and not billed in the network (b) Mm3 1.16 0.99 1.01 2.0 measured unbilled authorized consumption Mm3 0.88 0.85 0.85 - unmeasured unbilled authorized consumption Mm3 0.28 0.14 0.16 14.3 LOSS ASSESSMENT ACCORDING TO ARERA RESOLUTION 917/17 R/IDR water leaks Mm3 30.66 30.40 28.13 -7.5 water loss percentages % 51.2 50.6 48.4 -4.3 TREATED WASTEWATER water treated in the main treatment plants Mm3 56.0 61.3 56.5 -7.8

WATER COMPANIES DATA SHEETS AND OVERSEAS ACTIVITIES 199 PRODUCTS AND ANALYTICAL TESTS (cont.) m.u. 2017 2018 2019(*) ∆% 2019/2018 ANALYTICAL TESTS ON DRINKING WATER AND WASTEWATER no. analytical tests on drinking water no. 79,750 136,881 135,500 -1.0 of which no. analytical tests on surface water no. 8,500 7,500 6,500 -13.3 no. analytical tests on wastewater(**) no. 38,128 39,693 38,481 -3.1

(*) The 2019 data for the water balance are estimated because they were only partially available at the time of publication. (**) The figure includes analyses carried out at purification plants and industrial waste.

RESOURCES USED(*) m.u. 2017 2018 2019 ∆% 2019/2018 COLLECTION, SUPPLY AND DISTRIBUTION DRINKING AND NON-DRINKING WATER materials sodium hypochlorite t 60.0 60.0 60.0 - sodium chloride t 200.0 200.0 200.0 - hydrochloric acid t 200.0 200.0 200.0 - aluminium polychloride t 12.0 12.0 12.0 - phosphoric acid (10%) t 9.0 9.0 9.0 - acetic acid t 100.0 0.0 0.0 - WASTEWATER TREATMENT materials polyelectrolyte emulsion t 80.0 90.9 90.9 - ferric chloride (40%) t 40.0 28.0 28.0 - mineral oil and fats t 1.40 1.40 1.40 - OTHER CONSUMPTION drinking water m3 28,889 28,889 28,889 - drinking water consumed for non-industrial water uses m3 2,282 2,282 2,282 - (offices, outside showers, etc.) drinking water consumed for process water uses m3 26,607 26,607 26,607 - (washing machinery and bays, etc.) (*) Data are estimated.

ENERGY CONSUMPTION m.u. 2017 2018 2019 ∆% 2019/2018 FUELS vehicle fuels diesel l 475,491 436,371 422,430 -3.2 petrol l 10,928 8,645 7,497 -13.3 electricity total electricity for drinking water GWh 71.86 71.46 72.82 1.9 electricity for water pumping stations GWh 71.49 71.08 72.45 1.9 electricity for offices GWh 0.37 0.38 0.37 -2.6 total electricity for wastewater GWh 20.93 21.02 22.56 7.3 electricity for treatment GWh 16.97 16.29 17.70 8.7 electricity for pumping stations GWh 3.84 4.62 4.74 2.6 electricity for offices GWh 0.12 0.11 0.11 -

WASTE m.u. 2017 2018 2019 ∆% 2019/2018 SPECIFIC WASTE FROM TREATMENT OF WASTEWATER treatment sludge(*) t 19,573 13,185 16,436 24.7 sand and sediment from treatment t 1,238 841 1,332 58.3 WASTE PURSUANT TO LEGISLATIVE DECREE NO. 152/06 EXCLUDING SLUDGE AND SAND hazardous waste t 8.9 6.0 7.2 20.0 non-hazardous waste(*) t 9,605 6,693 5,931 -11.4 (*) The figure includes liquid sludge transported to other plants for the dewatering process, for a value of 8,100 t in 2017 and 4,913 t in 2018.

200 ACEA GROUP / SUSTAINABILITY REPORT 2019 TOTAL COD IN INPUT AND OUTPUT (2017-2019) (t/year) 2017 2018 2019

CODin 24,015.5 33,394.8 18,481.6

CODout 3,079.5 2,777.0 2,365.5

OUTPUT PARAMETERS FOR THE MAIN TREATMENT PLANTS MANAGED BY UMBRA ACQUE (2017-2019) parameter average values (mg/l) 2017 average values (mg/l) 2018 average values (mg/l) 2019

BOD5 24.4 21.6 20.1 COD 55.0 45.3 41.9 SST 25.1 24.6 25.5 + NH4 7.3 8.0 6.5 phosphorus 2.3 2.0 2.0

TREATMENT EFFICIENCY OF THE MAIN TREATMENT PLANTS MANAGED BY UMBRA ACQUE (2017-2019) parameter average values (%) 2017 average values (%) 2018 average values (%) 2019

100x(CODin – CODout)/CODin 87.2 91.7 87.2

100x(SSTin – SSTout)/SSTin 94.5 90.3 89.1 + + + 100x(NH4 in – NH4 out)/NH4 in 83.3 80.7 83.5 -3 -3 -3 100x(PO4 in – PO4 out)/PO4 in 35.9 31.4 n.a.

PUBLIACQUA Publiacqua SpA is a mixed-ownership Company with a majority pub- served, including cities of great artistic and environmental value such lic interest, owned by Acea through Acque Blu Fiorentine SpA, which as Florence, Prato and Pistoia. since 2002 has managed the integrated water service in the area of Optimal Territorial Conference no. 3 – Medio Valdarno, with over 1.2 The water and sewerage networks are respectively 6,800 km and million inhabitants, equal to approximately 397,000 user accounts 3,700 km long.

HUMAN RESOURCES IN FIGURES PUBLIACQUA EMPLOYEES: STAFF BREAKDOWN (2018-2019) (no.) 2018 2019 men women total weight % men women total weight % executives 3 1 4 0.7 3 1 4 0.7 managers 9 8 17 3.0 11 8 19 3.2 clerical workers 172 127 299 52.3 176 133 309 52.2 workers 245 6 251 44.0 254 6 260 43.9 total 429 142 571 100.0 444 148 592 100.0

PUBLIACQUA EMPLOYEES: CONTRACT TYPE (2018-2019) (no.) 2018 2019 men women total men women total staff with permanent contract 425 142 567 425 148 573 (of which) part-time staff 3 12 15 3 11 14 permanent staff 4 0 4 7 0 7 staff under apprenticeship contracts 0 0 0 12 0 12 total 429 142 571 444 148 592

INDUSTRIAL ACCIDENTS AND FREQUENCY AND SEVERITY INDICES (2018-2019) 2018(*) 2019 accidents (no.) 25 24 total days of absence(**) 594 592 hours worked 930,282 957,478 frequency index (FI) (number of accidents per 1,000,000/working hours) 26.87 25.07 severity index (SI) (days of absence per 1,000/working hours) 0.64 0.62

(*) The figure related to the hours worked was consolidated in 2019 and differs from what was published in 2018. The frequency and severity indices were therefore recalculated on the basis of the consolidated data. (**) The value also excludes days of absent related to persistent or reopened injuries from previous years.

WATER COMPANIES DATA SHEETS AND OVERSEAS ACTIVITIES 201 TRAINING COURSES AND COSTS IN PUBLIACQUA (2018-2019)(*) course type courses (no.) editions (no.) training (hours) costs (€) 2018 2019 2018 2019 2018 2019 2018 2019 advanced training 1 4 8 6 581 372 0 0 IT 4 2 5 2 85 32 11,700 2,200 languages 1 0 15 0 109 0 6,000 0 technical-specialized 37 42 62 78 4,104 4,524 64,500 64,500 managerial 9 15 14 32 371 1,423 19,300 30,000 administrative-managerial 52 32 97 37 1,580 939 28,500 43,000 safety 42 52 135 125 5,554 5,027 68,000 72,300 total 146 147 336 280 12,384 12,317 198,000 212,000

(*) Figures for 2018 have been restated compared to last year’s publication. (**) The advanced training courses provided to employees are managed by Acea SpA, which bears the costs.

TRAINED EMPLOYEES (2018-2019) (no.) 2018(*) 2019 men women total men women total 440 148 588 433 142 575

(*) The number of employees trained in 2018 is higher than the number of employed staff since the figure also includes trained employees no longer present in the work- force as at 31.12.2018.

NETWORK AND PLANT CONSISTENCY WATER SYSTEM MANAGED BY PUBLIACQUA (2017-2019)(*) 2017 2018(**) 2019 water network (km) 6,715 6,785 6,805 aqueducts and transport networks (km) 1,347 1,372 1,375 distribution network (km) 5,368 5,413 5,430 well intake structures (no.) 595 576 579 spring intake structures (no.) 846 842 842 river intake structures (no.) 60 61 61 lake intake structures (no.) 22 22 22 pumping stations (no.) 423 426 427 reservoirs (no.) 910 913 913 disinfection/treatment plants (no.) 106 99 99 (*) The data are consistent with the communication to ARERA concerning the managed infrastructures. (**) The figures for 2018 have been restated compared to what was previously published.

PURIFICATION AND SEWERAGE PLANTS MANAGED BY PUBLIACQUA (2017-2019)(*) 2017 2018(**) 2019 purification plants (no.) 126 127 126 sewerage pumping stations (no.) 209 210 235 sewerage network (km) 3,622 3,688 3,711

(*) The data are consistent with the communication to ARERA concerning the managed infrastructures. (**) The figures for 2018 have been restated compared to last year’s publication.

CERTIFICATIONS Publiacqua has an Integrated Quality, Environment and Safe- Company successfully passed the audit for the renewal of the ty Management System (QAS) in compliance with the UNI three certifications. ISO 9001:2015, UNI ISO 14001:2015 and BS OHSAS The analysis laboratory is accredited according to the UNI ISO/ 18001:2007 standards for its main operations. In 2019 the IEC 17025:2005 standard.

ENVIRONMENTAL ACCOUNTS PRODUCTS AND ANALYTICAL TESTS m.u. 2017 2018 2019 ∆% 2019/2018 WATER BALANCE drinking water from the environment Mm3 166.3 163.6 158.6 -3.1 from the surface Mm3 106.5 105.2 101.2 -3.8 from wells Mm3 48.0 46.5 44.3 -4.7

202 ACEA GROUP / SUSTAINABILITY REPORT 2019 PRODUCTS AND ANALYTICAL TESTS (cont.) m.u. 2017 2018 2019 ∆% 2019/2018 from springs Mm3 11.3 11.4 12.6 11.0 of which water from other aqueduct systems Mm3 0.5 0.5 0.5 - total drinking water leaving the aqueduct system (e) = (a+b+c+d) Mm3 86.4 87.6 88.5 1.0 total drinking water dispensed and billed in the network (a) Mm3 80.9 79.3 79.6 0.4 measured volume of water delivered to users Mm3 80.9 79.3 79.6 0.4 volume consumed by users and not measured Mm3 0 0 0 - total drinking water authorized and not billed in the network (b) Mm3 0.4 0.4 0.4 - measured unbilled authorized consumption Mm3 0 0 0 - unmeasured unbilled authorized consumption Mm3 0.4 0.4 0.4 - drinking water exported (sub-distributors) (c) Mm3 0.6 0.6 0.5 -16.7 measured process losses (d) Mm3 4.5 7.3 8.0 9.6 LOSS ASSESSMENT ACCORDING TO ARERA RESOLUTION 917/17 R/IDR water leaks(*) Mm3 79.9 75.9 70.1 -7.7 water loss percentages % 48.0 46.4 44.2 -4.8 TREATED WASTEWATER water treated in the main treatment plants Mm3 102.0 112.9(**) 105.0 -7.0 ANALYTICAL TESTS ON DRINKING WATER AND WASTEWATER no. analytical tests on drinking water no. 225,261 249,948(**) 261,251 4.5 of which no. analytical tests on surface water(***) no. 22,743 23,309 24,497 5.1 no. analytical tests on wastewater no. 39,535 35,668(**) 40,127 12.5

(*) The value of the water losses coincides with the “total lost volume (WLtot)” and includes the unmeasured treatment losses, the supply losses and the total distribution water losses. (**) The figures for 2018 have been restated compared to what was previously published. (***) Analysis of crude surface water (untreated).

RESOURCES USED m.u. 2017(*) 2018 2019 ∆% 2019/2018 COLLECTION, SUPPLY AND DISTRIBUTION OF DRINKING AND NON-DRINKING WATER materials sodium hypochlorite t 1,509 1,354 1,384 2.2 sodium chloride t 278 276 351 27.2 hydrochloric acid t 302 312 378 21.2 flocculant t 4,219 4,611 5,818 26.2 purate t 431 407 353 -13.3 sulphuric acid t 709 682 565 -17.2 oxygen t 31 70 37 -47.1 acetic acid t 76 104 126 21.2 carbon dioxide excluding drinking fountains t 791 682 804 17.9 ferrous chloride t 40 37 30 -18.9 phosphoric acid t 13 18 16 -11.1 WASTEWATER TREATMENT materials polyelectrolyte emulsion t 317 288 378 31.3 sodium hypochlorite t 18 30 70 133.3 peracetic acid, caustic soda, polyamine/anti-foaming agent t 7 11 15 36.4 polyaluminium chloride (PAC) t 4,445 4,080 4,354 6.7 lime t 338 387 530 37.0 acetic acid 80% t 304 214 524 144.9 OTHER CONSUMPTION drinking water m3 n.a. n.a. n.a. -

(*) The data for wastewater purification materials for the year 2017 have been restated compared to what was previously published.

WATER COMPANIES DATA SHEETS AND OVERSEAS ACTIVITIES 203 ENERGY CONSUMPTION m.u. 2017 2018 2019 ∆% 2019/2018 FUELS process fuels – wastewater methane Sm3 70,234 60,307 63,941 6.0 biogas produced m3 472,643 661,663 668,720 1.1 heating fuels methane Sm3 36,589 30,710 51,059 66.3 diesel fuel l 5,933 4,000 4,600 13.0 lpg l 1,400 2,800 1,960 -30.0 vehicle fuels diesel l 370,755 365,047 361,469 -1.0 petrol l 31,168 23,817 16,404 -31.1 ELECTRICITY total electricity for drinking water GWh 79.3 78.2 76.9 -1.8 electricity for water pumping stations GWh 77.8 76.8 75.4 -1.8 electricity for offices GWh 1.5 1.4 1.5 2.6 total electricity for wastewater(*) GWh 35.5 37.4 36.3 -2.9 electricity for treatment GWh 31.3 32.7 32.5 -0.6 electricity for pumping stations GWh 4.1 4.6 3.8 -17.4 electricity for offices GWh 0.1 0.1 0.1 -

(*) Figures for 2018 have been restated compared to last year’s publication. In 2019, relamping and energy efficiency interventions were carried out at the Osmannoro plant.

ENERGY EFFICIENCY PUBLIACQUA (2017-2019) energy savings achieved (kWh) action 2017 2018 2019 Anconella drinking water conversion plant – check valve - 130,000 - Prato acquifer – new pumps 100,000 - - San Giovanni V water treatment system – revamping of pump - 30,000 - delivery pipes network efficiency improvement - 300,000 - Osmannoro plant – new process blower - 60,000 Villamagna 90 office – LED relamping 6,100

WASTE m.u. 2017 2018 2019 ∆% 2019/2018 SPECIFIC WASTE FROM TREATMENT OF WASTEWATER treatment sludge t 28,792 29,340 30,145 2.7 sand and sediment from treatment t 767 793 1,286 62.2 WASTE PURSUANT TO LEGISLATIVE DECREE NO. 152/06 EXCLUDING SLUDGE AND SAND hazardous waste t 39 42 41 -2.4 non-hazardous waste t 9,606 11,136 8,356 -25.0

TOTAL COD IN INPUT AND OUTPUT (2017-2019) (t/year) 2017(*) 2018 2019

CODin 18,605 17,031 17,463

CODout 1,756 2,011 1,403

(*) The data have been restated compared to last year’s publication.

OUTPUT PARAMETERS OF THE SAN COLOMBANO TREATMENT PLANT (2017-2019)(*) parameter average values (mg/l) 2017 average values (mg/l) 2018 average values (mg/l) 2019

BOD5 2.1 2.4 1.5 COD 16.0 16.8 12.8 SST 6.0 8.4 4.1 + NH4 0.7 0.8 0.6 phosphorus 0.9 0.8 0.8

(*) It should be noted that the San Colombano wastewater treatment plant (600,000 population equivalent) treats about half of Publiacqua’s global wastewater.

204 ACEA GROUP / SUSTAINABILITY REPORT 2019 OUTPUT PARAMETERS FOR THE MAIN TREATMENT PLANTS MANAGED BY PUBLIACQUA (2017-2019)(*) parameter average values (mg/l) 2017 average values (mg/l) 2018 average values (mg/l) 2019

BOD5 4.1 3.0 2.6 COD 24.7 21.0 18.2 SST 7.1 11.0 6.3 + NH4 3.2 2.5 2.9 phosphorus 2.0 1.6 1.6

(*) The figures include 38 treatment plants, including San Colombano, which treat a total of 98% of wastewater and 96% of the organic load (COD) of Publiacqua.

PURIFICATION EFFICIENCY OF THE MAIN PURIFICATION PLANTS MANAGED BY PUBLIACQUA (2017-2019) parameter average values (%) 2017 average values (%) 2018 average values (%) 2019

100x(CODin – CODout)/CODin 89.4 86.1 91.2

100x(SSTin-SSTout)/SSTin 92.1 88.4 94.8 + + + 100x(NH4 in – NH4 out)/NH4 in 97.1 96.1 98.0 -3 -3 -3 100x(PO4 in -PO4 out)/PO4 in 70.9 68.3 74.8

PURIFICATION EFFICIENCY OF THE MAIN PURIFICATION PLANTS MANAGED BY PUBLIACQUA (2017-2019)(*) parameter average values (%) 2017 average values (%) 2018 average values (%) 2019

100x(CODin – CODout)/CODin 90.6 93.3 92.0

100x(SSTin-SSTout)/SSTin 93.2 91.8 95.6 + + + 100x(NH4 in – NH4 out)/NH4 in 95.5 91.9 96.7 -3 -3 -3 100x(PO4 in -PO4 out)/PO4 in 67.4 60.6 72.0 (*) The figures include 38 treatment plants, including San Colombano, which treat a total of 98% of wastewater and 96% of the organic load (COD) of Publiacqua.

ADF AdF SpA manages the integrated water service in the area of of approximately 402,000 inhabitants and a surface area of over Optimal Territorial Conference 6 Ombrone (formerly OTA 6), 7,600 km2. consisting of 55 municipalities in the province of Grosseto and The water and sewerage networks are respectively 8,233 km and 27 municipalities in the province of Siena, with a total population 1,614 km long.

HUMAN RESOURCES IN FIGURES ADF EMPLOYEES: STAFF BREAKDOWN (2018-2019) (no.) 2018 2019 men women total weight % men women total weight % executives 1 0 1 0.2 1 1 2 0.5 managers 11 5 16 3.9 11 4 15 3.8 clerical workers 122 101 223 54.5 121 100 221 56.4 workers 168 1 169 41.3 153 1 154 39.3 total 302 107 409 100.0 286 106 392 100.0

ADF EMPLOYEES: CONTRACT TYPE (2018-2019) (no.) 2018 2019 men women total men women total staff with permanent contract 298 102 400 283 103 386 (of which) part-time staff 4 15 19 5 16 21 permanent staff 4 4 8 1 1 2 staff under apprenticeship contracts 1 0 1 2 2 4 total 303 106 409 286 106 392

WATER COMPANIES DATA SHEETS AND OVERSEAS ACTIVITIES 205 INDUSTRIAL ACCIDENTS AND FREQUENCY AND SEVERITY INDICES (2018-2019) 2018 2019 accidents (no.) 11 9 total days of absence(*) 264 284 hours worked 670,106 669,472 frequency index (FI) (number of accidents per 1,000,000/working hours) 16.42 13.44 severity index (SI) (days of absence per 1,000/working hours) 0.58 0.42

(*) The value also excludes days of absent related to persistent or reopened injuries from previous years.

TRAINING COURSES AND COSTS IN ADF (2018-2019) course type courses (no.) editions (no.) training (hours) costs (€) 2018 2019 2018 2019 2018 2019 2018 2019 IT 8 6 22 9 750 958 10,632 0 new hires 1 1 4 3 84 52 0 0 technical-specialized 18 11 39 22 926 453 27,140 26,182 managerial 3 5 3 7 976 296 0 9,280 administrative-managerial 16 16 20 18 844 890 14,505 4,450 safety 28 19 75 40 3,879 3,053 13,449 3,990 total 74 58 163 99 7,459 5,702 65,726 43,902

TRAINED EMPLOYEES (2018-2019) (no.) 2018 2019 men women total men women total 236 80 316 268 84 352

In 2019, the Company carried out professional refresher courses it held further training sessions in the field of risk management re- for employees on technical and commercial quality. Moreover, in lated to operations. the field of occupational safety, in addition to the required training

NETWORK AND PLANT CONSISTENCY WATER SYSTEM MANAGED BY ADF (active plants) (2017-2019) 2017 2018 2019 water network (km) 9,315 8,168(*) 8,233 aqueducts and transport networks (km) 1,967 1,966 1,984 distribution network (km)(**) 7,348 6,194 6,249 well intake structures (no.) 184 188 159 spring intake structures (no.) 248 248 250 river intake structures (no.) 1 1 1 lake intake structures (no.) 3 3 3 pumping stations (no.) 284 291 292 piezometers (no.) 13 13 13 reservoirs (no.) 796 800 800 disinfection/treatment plants (no.) 31 32 32 seawater desalination plant (n.) 3 3 3

(*) The figure for 2018 has been restated compared to what was previously published. (**) Note that from 2018 the total length of the water network does not include the connections, as resolved by ARERA 917/2017.

PURIFICATION AND SEWERAGE PLANTS MANAGED BY ADF (2017-2019) 2017 2018 2019 treatment plants (no.)(*) 144 145 146 sewerage pumping stations (no.) 271 273 285 sewerage network (km)(**) 3,215 1,594 1,644

(*) The data do not include the Imhoff pits. (**) The figure for 2018 was adjusted following the survey carried out with the GIS geographic information system.

206 ACEA GROUP / SUSTAINABILITY REPORT 2019 CERTIFICATIONS In 2019 AdF maintained its Integrated Quality and Safety Certification according to the UNI ISO 9001:2018 standard and the BS OHSAS 18001:2007 standard.

ENVIRONMENTAL ACCOUNTS PRODUCTS AND ANALYTICAL TESTS m.u. 2017 2018 2019(*) ∆% 2019/2018 WATER BALANCE drinking water from the environment Mm3 63.73 61.23 60.19 -1.7 from the surface Mm3 1.27 1.29 1.06 -17.8 from wells Mm3 23.71 22.80 20.22 -11.3 from springs Mm3 37.81 36.55 38.16 4.4 of which water from other aqueduct systems Mm3 0.94 0.59 0.75 27.1 drinking water transferred to other aqueduct systems Mm3 n.a. 1.57 1.27 -19.1 total drinking water leaving the aqueduct system (c) = (a+b) Mm3 n.a. 28.41 29.15 2.6 total drinking water dispensed and billed in the network (a) Mm3 n.a. 28.27 29.00 2.6 measured volume of water delivered to users Mm3 n.a. 28.27 29.00 0.4 volume consumed by users and not measured Mm3 n.a. 0 0 - total drinking water authorized and not billed in the network (b) Mm3 n.a. 0.14 0.15 2.8 measured unbilled authorized consumption Mm3 n.a. 0 0 - unmeasured unbilled authorized consumption Mm3 n.a. 0.14 0.15 2.8 LOSS ASSESSMENT ACCORDING TO ARERA RESOLUTION 917/17 R/IDR water leaks Mm3 n.a. 29.3 27.84 -5.0 water loss percentages % n.a. 47.9 46.3 -3.3 TREATED WASTEWATER(**) water treated in the main treatment plants Mm3 15.70 16.92 19.97 18.0 water treated in plants with a capacity of more than 2,000 Mm3 23.20 25.43 27.62 8.6 population equivalent ANALYTICAL TESTS ON DRINKING WATER AND WASTEWATER no. analytical tests on drinking water no. 77,137 80,292 83,228 3.7 of which no. analytical tests on surface water no. 678 430 408 -5.1 no. analytical tests on wastewater no. 44,304 49,415 50,065 1.3

(*) The 2019 data for the water balance are estimated because they were only partially available at the time of publication. (**) The figures for 2018 have been restated compared to last year’s publication.

RESOURCES USED m.u. 2017(*) 2018 2019 ∆% 2019/2018 COLLECTION, SUPPLY AND DISTRIBUTION OF DRINKING AND NON-DRINKING WATER(*) materials carbon dioxide t 26.40 12.84 1.28 -90.0 sodium hypochlorite 15% t 226.72 220.28 200.12 -9.2 descaling t 17.27 13.90 8.00 -42.4 hydrochloric acid 30% t 2.90 3.1 9.65 211.3 sodium chloride 25% t 4.96 4.4 3.00 -31.8 highly basic aluminium polychloride 10% t 8.60 7.50 6.93 -7.6 sodium hydroxide 30% t 3.54 6.17 22.21 260.0 magnesium sulphate heptahydrate t 14.00 10.00 17.00 70 semicalcium dolomite t 10.00 9.00 6.00 -33.3 calcium carbonate t 11.00 9.00 6.00 -33.3 food polyphosphates t 2.25 0.70 0.75 -7.1 potassium permanganate t - - 0.60 - ferric chloride t - - 3.96 - sodium hydroxide 50% t - - 16.92 - sulphuric acid 50% t - - 0.12 - calcium nitrate 50% t - - 21.00 - polyamines t - - 0.15 -

WATER COMPANIES DATA SHEETS AND OVERSEAS ACTIVITIES 207 RESOURCES USED (cont.) m.u. 2017(*) 2018 2019 ∆% 2019/2018 WASTEWATER TREATMENT(**) materials polyelectrolyte t 155.25 76.65 112.20 46.4 sodium hypochlorite 15% t 316.05 307.07 278.97 -9.2 peracetic acid 15% t 26.46 61.12 75.04 22.8 highly basic aluminium polychloride 10% t 12.65 - - - OTHER CONSUMPTION drinking water m3 n.a. n.a. n.a. -

(*) Deviations from previous years result from changes in the quantity and quality of the resource treated and from plant efficiency. (**) The changes depend on the entry into operation of the disinfection treatment with peracetic acid and on the lower need for aluminium polychloride in the sedimenta- tion phase at the plants that may need it.

In some purification plants of Ponte a Tressa in the municipality fication plant in Punta Ala in the municipality of Castiglione della of Siena there is an industrial water network supplied by treated Pescaia. In particular, during the year, the volume of water reused wastewater used for washing machinery and for the bathrooms was around 47,500 m3 (approximately 50,700 m3 in 2018 and in the offices, and an irrigation network, for example at the puri- 74,900 m3 in 2017).

ENERGY CONSUMPTION m.u. 2017 2018 2019 ∆% 2019/2018 FUELS wastewater process fuels methane Sm3 204,757 169,382 178,292 5.3 heating fuels methane Sm3 37,907 33,129 34,048 2.8 diesel fuel l 0 2,800 1,900 -32.1 vehicle fuels diesel(*) l 365,950 381,477 375,554 -1.6 petrol(**) l 174 808 759 -6.1 ELECTRICAL AND THERMAL ENERGY total electricity for drinking water(***) GWh 36.95 35.27 33.77 -4.3 electricity for water pumping stations GWh 36.42 34.42 32.99 -4.2 electricity for offices GWh 0.38 0.66 0.67 1.5 total electricity for wastewater(***) GWh 24.09 24.96 23.21 -7.0 electricity for treatment GWh 21.77 22.35 20.53 -8.1 electricity for pumping stations GWh 2.32 2.62 2.68 2.3

thermal energy from district heating MWht 39.13 40.62 43.18 6.3

(*) The figure for 2017 refers to the consumption of diesel for vehicles and other uses (motor pump, small transportable generators, etc.). (**) The figure for 2017 refers only to the consumption of petrol for motor vehicles and, unlike in 2018 and 2019, does not show the contribution of consumption for other uses (motor pump, small transportable generators, etc.). (***) The data have been restated compared to last year’s publication.

In 2019, as part of its extraordinary maintenance, the Compa- lighting fixtures, etc.) with highly efficient machinery that will gen- ny replaced machines and equipment (e.g. pumps, compressors, erate energy savings in the coming years.

ADF ENERGY EFFICIENCY (2017-2019) energy savings achieved (kWh) action 2017 2018 2019 efficiency improvement of drinking water pumping systems 225,000 - - efficiency improvement of treatment processes - 38,000 - replacement of lighting fixtures with LED fixtures 2,100 - -

208 ACEA GROUP / SUSTAINABILITY REPORT 2019 WASTE(*) m.u. 2017 2018 2019 ∆% 2019/2018 SPECIFIC WASTE FROM TREATMENT OF WASTEWATER treatment sludge t 11,289.34 8,507.88 8,975.39 5.5 sand and sediment from treatment t 484.40 524.46 920.89 75.6 WASTE PURSUANT TO LEGISLATIVE DECREE NO. 152/06 EXCLUDING SLUDGE AND SAND hazardous waste t 48.42 10.71 18.27 70.6 non-hazardous waste t 732.51 379.93 421.21 10.9

(*) It should be noted that the waste produced was delivered for disposal or recovery to Italian destinations. About 10% of the sludge produced was transferred abroad by the same national recipients.

TOTAL COD IN INPUT AND OUTPUT (2017-2019) (t/year) 2017 2018 2019

CODin 6,428 8,765 8,211

CODout 720 594 606

OUTPUT PARAMETERS FOR THE MAIN TREATMENT PLANTS MANAGED BY ADF (2017-2019)(*) parameter average values (mg/l) 2017 average values (mg/l) 2018 average values (mg/l) 2019

BOD5 7.9 8.3 7.6 COD 41.0 35.0 35.8 SST 10.0 9.1 8.5 + NH4 6.4 10.4 8.5 phosphorus 2.6 2.8 3.02

(*) Installations with a treatment capacity greater than 20,000 population equivalent are considered.

TREATMENT EFFICIENCY OF THE MAIN TREATMENT PLANTS MANAGED BY ADF (2017-2019)(*) parameter average values (%) 2017 average values (%) 2018 average values (%) 2019

100x(BODin – BODout)/BODin 94.9 96.4 96.9

100x(CODin – CODout)/CODin 88.8 93.2 92.6

100x(SSTin-SSTout)/SSTin 92.9 95.7 94.6 + + + 100x(NH4 in – NH4 out)/NH4 in 81.8 76.9 81.2 -3 -3 -3 100x(PO4 in -PO4 out)/PO4 in 46.0 57.8 57.5 (*) Installations with a treatment capacity greater than 20,000 population equivalent are considered.

ACQUE Acque SpA manages the integrated water service in the area of ca, Florence, Pistoia and Siena, with a total population of 740,000 Optimal Territorial Conference 2 Lower Valdarno on the basis of inhabitants equal to approximately 328,000 user accounts. the concession agreement issued by the Autorità Idrica Toscana The water and sewerage networks cover about 5,950 km and (AIT), consisting of 53 municipalities in the provinces of Pisa, Luc- 3,000 km, respectively.

HUMAN RESOURCES IN FIGURES ACQUE EMPLOYEES: STAFF BREAKDOWN (2018-2019) (no.) 2018 2019 men women total weight % men women total weight % executives 3 2 5 1.2 3 2 5 1.2 managers 5 4 9 2.2 6 4 10 2.4 clerical workers 91 151 242 60.0 93 153 246 59.9 workers 147 0 147 36.5 150 0 150 36.5 total 246 157 403 100.0 252 159 411 100.0

WATER COMPANIES DATA SHEETS AND OVERSEAS ACTIVITIES 209 ACQUE EMPLOYEES: CONTRACT TYPE (2018-2019) (no.) 2018 2019 men women total men women total staff with permanent contract 239 146 385 240 157 397 (of which) part-time staff 4 29 33 3 30 33 permanent staff 7 11 18 12 2 14 staff under apprenticeship contracts 0 0 0 0 0 0 total 246 157 403 252 159 411

INDUSTRIAL ACCIDENTS AND FREQUENCY AND SEVERITY INDICES (2018-2019) 2018 2019 accidents (no.) 6 5 total days of absence(*) 99 108 hours worked 646,149 670,705 frequency index (FI) (number of accidents per 1,000,000/working hours) 9.29 7.45 severity index (SI) (days of absence per 1,000/working hours) 0.15 0.16

(*) The value also excludes days of absence related to persistent or reopened injuries from previous years.

TRAINING COURSES AND COSTS IN ACQUE (2018-2019)(*) course type courses (no.) sessions (no.) training (hours) costs (€)(**) 2018 2019 2018 2019 2018 2019 2018 2019 IT 7 7 14 8 489 261 n.a. n.a. new hires 1 1 3 1 326 87 n.a. n.a. technical-specialized 51 42 61 67 1,029 1,861 n.a. n.a. managerial 4 0 11 0 504 0 n.a. n.a. safety 27 32 86 71 4,663 2,477 n.a. n.a. environment 2 3 9 17 164 351 n.a. n.a. cross-cutting 5 9 20 25 896 933 n.a. n.a. training pursuant to Legislative 1 2 1 6 7 298 n.a. n.a. Decree 231/01 e-learning training 2 1 2 1 40 100 n.a. n.a. total 100 97 207 196 8,118 6,368 50,844 42,085

(*) The figures for 2018 have been restated compared to last year’s publication, adding the final figures as at 31.12. (**) No cost data are available broken down by type of training.

TRAINED EMPLOYEES (2018-2019)(*) (no.) 2018(**) 2019 men women total men women total 260 140 400 262 170 432

(*) The figures are higher than the number of employees as they include employees of other companies, posted workers and workers who provided services only for a few months of the year. (**) The figures for 2018 have been restated compared to last year’s publication, adding the final figures as at 31.12.

In 2019 training was provided to all Company personnel for a total management of waste and on ADR regulations and those on the of 6,368 hours. New for this year are courses on the UNI ISO new European privacy regulation. Occupational safety training re- 37001:2016 management system for the prevention of corruption mains at the top for hours of training. and others on updates to the 231 Model, courses on the proper

NETWORK AND PLANT CONSISTENCY WATER SYSTEM MANAGED BY ACQUE (active plants) (2017-2019) 2017 2018 2019 water network (km) 5,921 5,943 5,954 aqueducts and transport networks (km) 834 835 835 distribution network (km) 5,087 5,107 5,119 well intake structures (no.) 531 525 518 spring intake structures (no.) 299 297 298

210 ACEA GROUP / SUSTAINABILITY REPORT 2019 WATER SYSTEM MANAGED BY ACQUE (active plants) (2017-2019) (cont.) 2017 2018 2019 river and lake intake structures (no.) 21 20 20 reservoirs (no.) 568 561 558 disinfection/treatment plants (no.)(*) 240 234 175 pumping stations (no.) 415 409 406

(*) In 2019 the significant reduction in the number of plants compared to the previous two years is due to a downgrading of some facilities identified as chlorination from a single source and no longer as plants.

PURIFICATION AND SEWERAGE PLANTS MANAGED BY ACQUE (2017-2019) 2017 2018 2019 purification plants (no.) 139 138 137 sewerage pumping stations (no.) 531 544 536 sewerage network (km) 3,066 3,048 3,062

CERTIFICATIONS Acque has implemented an Integrated Management System cer- of the test laboratories according to the UNI CEI EN ISO/IEC tified according to a scheme based on quality, environment, safe- 17025:2005 standard, for which transition to the new 2018 edi- ty, energy and social responsibility, road safety and the preven- tion of the standard was completed during the year, and the EMAS tion of corruption. These are complemented by the accreditation registration of the Pagnana purification plant in Empoli (Florence).

ENVIRONMENTAL ACCOUNTS PRODUCTS AND ANALYTICAL TESTS m.u. 2017 2018(*) 2019(**) ∆% 2019/2018 WATER BALANCE drinking water from the environment Mm3 80.06 78.43 76.73 -2.0% from the surface Mm3 3.48 3.78 3.70 -2.0% from wells Mm3 63.38 59.39 58.21 -2.0% from springs Mm3 6.43 7.04 6.90 -2.0% of which water from other aqueduct systems Mm3 6.77 8.22 7.92 -3.6% drinking water transferred to other aqueduct systems Mm3 1.08 0.86 1.06 23.2% total drinking water leaving the aqueduct system (c) = (a+b) Mm3 44.60 44.20 44.20 - total drinking water dispensed and billed in the network (a) Mm3 44.33 43.98 43.98 - measured volume of water delivered to users Mm3 44.33 43.98 43.98 - volume consumed by users and not measured Mm3 0 0 0 - total drinking water authorized and not billed in the network (b) Mm3 0.27 0.22 0.22 - measured unbilled authorized consumption Mm3 0.05 0.06 0.06 - unmeasured unbilled authorized consumption Mm3 0.22 0.16 0.16 - LOSS ASSESSMENT ACCORDING TO ARERA RESOLUTION 917/17 R/IDR water leaks Mm3 15.85 15.03 14.4 -4.2 water loss percentages % 42.94 41.66 40.55 -2.7 TREATED WASTEWATER water treated in the main treatment plants Mm3 45.31 47.35 46.74 -1.3 ANALYTICAL TESTS ON DRINKING WATER AND WASTEWATER(**) no. of analyses of drinking water (including surface water tests) no. 266,850 285,174 329,582 15.6 no. of analytical tests on wastewater no. 119,742 116,636 128,450 10.1

(*) The figures for 2018 have been corrected by entering the final figures as at 31.12. (**) The 2019 figures are estimated.

WATER COMPANIES DATA SHEETS AND OVERSEAS ACTIVITIES 211 RESOURCES USED m.u. 2017 2018 2019 ∆% 2019/2018 COLLECTION, SUPPLY AND DISTRIBUTION DRINKING AND NON-DRINKING WATER materials laboratory reagents (chemical section and microbiological section) t 2.37 2.51 2.03 -19.1 sodium hypochlorite t 220.30 187.92 208.82 11.1 hydrochloric acid t 394.51 383.53 351.09 -8.5 potassium permanganate t 3.85 2.12 2.75 29.7 aluminium polychloride t 9.41 30.60 181.73 493.9 DREWO 8155 PG powder t 0 1.20 5.00 316.7 DREFLO 908 PG powder t 0 0.12 3.98 - salt in bags t 7.05 0 7.20 - sodium chloride t 377.47 384.68 354.34 -7.9 caustic soda t 1.12 0 0.55 - sodium metabisulphite t 2.17 0 0 - citric acid t 1.98 0.45 1.23 173.3 alifons L t 0.02 0.10 0 - aluminium polychlorosulphate t 170.22 154.83 11.55 -92.5 WASTEWATER TREATMENT materials polyelectrolyte emulsion t 140.98 137.93 169.08 22.6 aluminium polychloride t 9.00 15.70 12.00 -23.6 ferric chloride for sludge dehydration t 437.83 471.76 496.03 5.1 sodium hypochlorite for final disinfection t 14.42 64.90 11.55 -82.2 peracetic acid for disinfection t 12.00 4.00 0 - acetic acid t 0 0 0.10 - sulphuric acid t 2.30 0 1.25 - ferrous chloride t 10.22 5.37 0 - caustic soda (sodium hydroxide) – Solvay t 1.57 0.38 1.15 202.6 citric acid t 0.10 0 0 - biotek base L – biological reactivator t 0.12 0 0.04 - biotek clar – biological reactivator t 1.12 0.25 0.25 - desmell Bio L – odorogenic emissions treatment t 0.05 0.10 0.08 -25.0 nutrients t 479.40 514.85 545.50 6.0 other t 0.26 0.01 0 - OTHER CONSUMPTION drinking water(*) m3 277,104 199,821 210,021 -26.0 drinking water consumed for non-industrial water uses m3 55,459 72,423 82,623 14.1 (offices, outside showers, etc.) drinking water consumed for process water uses m3 221,645 127,398 127,398 0 (washing machinery and bays, etc.) (*) The 2019 data are estimated for December and the figure for 2018 has been adjusted with the final value.

The company reuses about 464,000 m3 of water recovered from tion equipment (belt presses) and for the backwashing of the Polli- industrial processes for the washing the sheets of sludge dehydra- no water plant filters in Porcari (Lucca).

ENERGY CONSUMPTION m.u. 2017 2018 2019 ∆% 2019/2018 FUELS process fuels – drinking/non-drinking diesel fuel l 2,000 1,200 1,300 8.3 process fuels – wastewater diesel fuel l 1,560 0 1100 - heating fuels methane Sm3 51,846 56,357 56,244 -0.2 diesel fuel l 4,000 - - - lpg l 8,682 16,803 17,781 5.8

212 ACEA GROUP / SUSTAINABILITY REPORT 2019 ENERGY CONSUMPTION (cont.) m.u. 2017 2018 2019 ∆% 2019/2018 vehicle fuels diesel l 147,649 176,154 202,128 14.7 petrol l 21,559 17,730 33,962 91.3 methane kg 108,150 81,450 52,084 -36.1 ELECTRICITY total electricity for drinking water(*) GWh 55.41 53.36 53.80 0.8 electricity for water pumping stations GWh 55.09 52.81 53.34 1.0 electricity for offices GWh 0.32 0.55 0.46 -16.4 total electricity for wastewater(*) GWh 31.83 33.41 32.83 -1.7 electricity for treatment GWh 26.12 26.00 25.70 -1.2 electricity for pumping stations GWh 5.53 7.07 6.85 -3.1 electricity for offices GWh 0.18 0.34 0.28 -17.6

(*) The 2019 data are estimated for December, and the figure for 2018 has been adjusted compared to what was published last year. Acque has completed energy efficiency projects that have led to the energy savings shown in the table below.

ENERGY EFFICIENCY OF ACQUE (2017-2019) energy savings achieved (kWh) action 2017 2018 2019 Pagnana plant – logical changes in operation 22,061 - - Le Lame plant – replacement of the aeration system 50,767 97,585 85,429 S. Jacopo system – replacement of the aeration system - 328,184 257,383 smaller plants – efficiency improvements of pumps 55,986 - -

WASTE(*) m.u. 2017 2018 2019 ∆% 2019/2018 SPECIFIC WASTE FROM TREATMENT OF WASTEWATER treatment sludge t 21,577.26 17,634.77 21,953.18 19.7 sand and sediment from treatment t 2,308.86 3,500.43 1,279.04 -63.5 WASTE PURSUANT TO LEGISLATIVE DECREE NO. 152/06 EXCLUDING SLUDGE AND SAND hazardous waste t 30.15 31.82 42.93 34.9 non-hazardous waste t 49,410.19 63,179.64 61,408.12 -2.80

TOTAL COD IN INPUT AND OUTPUT (2017-2019) (t/year) 2017 2018 2019

CODin 22,789 21,708 22,017

CODout 1,603 1,521 1,382

OUTPUT PARAMETERS FOR THE MAIN TREATMENT PLANTS MANAGED BY ACQUE (2017-2019)(*) parameter average values (mg/l) 2017 average values (mg/l) 2018 average values (mg/l) 2019

BOD5 5.3 6.2 6.3 COD 34.3 30.6 27.9 SST 7.6 7.4 7.0 + NH4 4.7 5.0 3.5 phosphorus 2.4 2.1 2.3

(*) Installations with a treatment capacity greater than or equal to 10,000 population equivalent are considered.

TREATMENT EFFICIENCY OF THE MAIN TREATMENT PLANTS MANAGED BY ACQUE (2017-2019)(*) parameter average values (%) 2017 average values (%) 2018 average values (%) 2019

100x(CODin – CODout)/CODin 93.5 93.5 93.7

100x(SSTin – SSTout)/SSTin 97.2 97.5 95.7 + + + 100x(NH4 in – NH4 out)/NH4 in 87.4 87.2 90.6 -3 -3 -3 100x(PO4 in – PO4 out)/PO4 in 74.6 73.0 68.8 (*) Installations with a treatment capacity greater than or equal to 10,000 population equivalent are considered.

WATER COMPANIES DATA SHEETS AND OVERSEAS ACTIVITIES 213 OVERSEAS ACTIVITIES CONSORCIO AGUA AZUL SA Acea works abroad in the water sector138 to improve the ser- The Agua Azul Consortium manages the supply of drinking wa- vice, especially as regards technical and management aspects, ter to the local publicly owned water company SEDAPAL (Lima including through staff training and the transfer of know-how Drinking Water and Sewerage Service). To this end, using the sur- to local businesses. face and underground waters of the Chillón river it built infrastruc- In particular, it is present in Peru, Honduras and the Dominican Re- ture capable of satisfying part of the drinking water needs of the public through companies created in partnership with local and inter- northern areas of Lima (Peru), for which it will be responsible for national stakeholders, and serves a total of about 4.2 million people. management until 2027, when it will be transferred to the State.

CONSORCIO AGUA AZUL SA – MAIN CORPORATE AND OPERATIONAL DATA country (area) Peru (north Lima – Cono Norte) inhabitants served 834,000 customer Sedapal (Drinking water and sewerage service in Lima, state owned) sources of financing equity capital and bonds issued on the Peruvian market duration of the contract 07.04.2000 – 18.06.2027 BOT (Build-Operate-Transfer) project for the construction and management of a drinking water purpose of the project supply system that draws on the water of the Chillón river and the underlying aquifer Acea SpA (25.5%), Impregilo International Infrastructures N.V. (25.5%), Marubeni Co. (29%), shareholders Inversiones Liquidas S.A.C (20%) no. of employees 32 turnover (in € thousand) 13,369

The Consorcio has adopted an Integrated Quality and Environ- design and management of treatment plants with rapid filtration for ment System according to UNI ISO 9001:2008 and UNI ISO graduates of Latin American countries, and continued the intern- 14001:2004 aimed at optimising production processes and re- ship programme for students and recent graduates in the area. Also ducing the environmental impact through energy efficiency and in 2019, the company hosted 555 visitors at its facilities, including the limited use of materials. students, delegations of companies operating in the sector and rep- The year saw the continuation of the training programme on safety resentatives of foreign institutions (Costa Rica and Japan). at work and first aid, carried out at university departments, special- With the aim of developing a link with local communities, the isation centres and local companies of primary importance, pro- Consorcio Agua Azul confirmed itssupport to state entities viding 2,939 hours of training for internal staff and contractors, (such as the State Police, schools, the Ministry of Agriculture and including safety drills, coordinated by the Carabayllo fire brigade. the Ministry of Health), non-profit organizations (such as associ- Continuous training on the issue made it possible to reach the goal ations for the rehabilitation of drug addicts) and consumer associ- of zero accidents at work in 2019. ations. Indeed, to promote school attendance 1,725 educational The Company has also held theoretical and hands-on courses kits were distributed to nursery, primary and secondary schools organized with the Asociación de Productores Ecológicos of the made of recycled plastic materials and decorated with phrases Chillón valley on the use of fertilizers, crop treatment and the on the proper use of water resources. Finally, for the Christmas maintenance of organic certification of agricultural products for holidays 1,965 toys and lunch vouchers were donated to the chil- a total of 1,066 hours. With regard to corporate welfare, in ad- dren of the area and to the children of employees for lunch at the dition to administering the annual assessment questionnaire on restaurant with their families. company climate, which again this year registered a level of sat- isfaction equal to 100%, the Consorcio promoted an influenza CONSORCIO SERVICIO SUR vaccination and pneumococcal vaccination campaign for em- Consorcio Servicio Sur is a special purpose vehicle led by Acea In- ployees and their families. ternational in partnership with Peruvian partners, which manages The relationship with the education world has been the subject of the preventive and corrective maintenance contract for the water great attention. In partnership with the Faculty of Engineering of the and sewerage system in the area south of Lima (Peru), for the pub- National University of Peru training courses were organized on the licly owned Peruvian water company SEDAPAL.

CONSORCIO SERVICIO SUR – MAIN CORPORATE AND OPERATING DATA country (area) Peru (south Lima) inhabitants served 1,121,886 customer Sedapal (drinking water and sewerage service in Lima, state owned) sources of financing equity duration of the contract 24.08.2018 – 24.08.2021 purpose of the project preventive and corrective maintenance of the water and sewerage system in the area south of Lima shareholders Acea International (50%), Acea Ato 2 (1%), Conhydra (29%), Valjo (14%), India (6%) no. of employees 176 turnover (in € thousand) 5,580

138 Overseas activities have a limited incidence from an economic and financial viewpoint, in terms of consolidation percentage, but a brief description of them is given here because of their social importance.

214 ACEA GROUP / SUSTAINABILITY REPORT 2019 From the standpoint of the the sharing economy, the company al- CONSORCIO SERVICIO NORTE lows employees to use company cars for commuting and to share A special purpose vehicle led by Acea International, in December them with other employees. 2019 the tender was awarded by the Peruvian state water company SEDAPAL following the emergency situation for the management of preventive and corrective maintenance of the water and sewerage systems in the area north of Lima (Peru) for a period of six months.

CONSORCIO SERVICIO NORTE – MAIN CORPORATE AND OPERATING DATA country (area) Peru (north Lima) inhabitants served 3,028,000 customer Sedapal (drinking water and sewerage service in Lima, state owned) sources of financing equity duration of the contract 6 months from the award of the tender purpose of the project preventive and corrective maintenance of the water and sewerage system in the area north of Lima shareholders Acea International SA , Acea Peru SAC no. of employees 454 turnover (in € thousand) 430

AGUAS DE SAN PEDRO Aguas de San Pedro ASP is the holder of a 30-year contract ment of the water service and sewerage network in the city. for the management of the integrated water service in the city The Company has a Quality Management System certified accord- of San Pedro Sula in Honduras, and during the year it continued ing to the UNI ISO 9001:2008 standard and the laboratories are with the projects for the expansion, treatment and improve- accredited according to the UNI ISO/IEC 17025:2005 standard.

AGUAS DE SAN PEDRO SA – MAIN COMPANY AND OPERATING DATA country (area) Honduras (San Pedro Sula) inhabitants served 755,000 customer municipal administration sources of financing equity capital and loans from commercial banks duration of the contract 01.02.2001 – 01.02.2031 purpose of the project concession of the integrated water service for the town of San Pedro de Sula shareholders Acea SpA 60.65%, Ireti SpA 39.35% no. of employees 411 turnover (in € thousand) 36,787

In line with previous years, in 2019 the company offeredtechnical as- management and maintenance of systems and the basic principles of sistance to rural communities, and promoted initiatives to protect the hydraulics. In addition, 108 bio-filters for drinking water were installed environment, continuing the programme for the conservation of the in the homes of the residents of the Merendón and quarterly checks El Merendón nature reserve, declared a protected area for the pro- were carried out on approximately 2,400 devices already supplied. duction of water in San Pedro Sula. In order to teach good hygiene to children, 4 committees were formed The initiatives include: and the maintenance of water and sanitation equipment was per- • the “Un millon de Árboles para el Merendón” reforestation pro- formed in schools. ject, planting 61,656 fruit and wood trees (about 826,000 plants Implementation of the workplace health plan continued, as envis- from the start of the project); aged in the EMS-IHSS-ASP Corporate Medical System, with target- • environmental training, with 12 courses involving a total of 266 ed campaigns on nutrition and healthy lifestyles. Finally, vaccination people including farmers benefiting from the reforestation pro- campaigns were offered against influenza, medical examinations for ject, members of the firefighting team, students of the Virgen de patients with chronic diseases and preventive dermatology and car- Suyapa agricultural school and staff of the cocoa producer co- diology checks. operative; • the construction of 4 surveillance towers to facilitate the detec- ACEA DOMINICANA SA tion and control of fires in the basins of the Rio Manchaguala and Acea Dominicana deals with the commercial management of the Rio Frio rivers; water service in the northern and eastern areas of Santo Domingo • fire prevention, with campaigns for the protection of the local re- in the Dominican Republic. The activities include the management gion, and the involvement of the fire team that has intervened in of customer relations, the billing cycle and cost estimates, the instal- the extinguishing of 19 fires in Merendón on about 90 hectares lation of new meters and directing the works for new connections. of forests; The framework of a contractual addendum already signed by Acea • social and technical assistance for the rural communities of Mer- Dominicana and Corporacion del Acueducto y Alcantarillado De endon. Santo Domingo (CAASD), which extended the contract duration In particular, the programme for technical assistance to rural commu- until 2023, also includes the financing, supply and installation of nities involved 14 workshops for the community leaders who manage 30,000 meters for new users and the replacement of 10,000 water systems, to increase their knowledge on the quality of water, the meters for existing users.

WATER COMPANIES DATA SHEETS AND OVERSEAS ACTIVITIES 215 Apart from the foregoing, the company also carries out mainte- Quality Management System certified according to theUNI ISO nance on the entire meter park. The Company implemented a 9001:2015 standard.

ACEA DOMINICANA SA – MAIN CORPORATE AND OPERATING DATA country (area) Dominican Republic (north and east Santo Domingo) inhabitants served 1,500,000 Corporación del Acueducto y Alcantarillado de Santo Domingo (CAASD) and Corporación de Acueducto customers y Alcantarillado de Boca chica (CORAABO) duration of the contract 01.10.2003 – 30.09.2023 purpose of the project commercial management of the water service shareholders Acea SpA 100% no. of employees 161 turnover (in € thousand) 4,143

With regard to the social dimension, in collaboration with CAASD, involving entrepreneurs, students and citizens of Boca Chica and educational campaigns for 800 students from schools in the neighbouring areas in the planting of about 10,000 trees to pre- capital were organized to raise awareness among them about the serve the wetlands, lagoon and spring essential for the water supply proper use of water, distributing gadgets and kits containing school of Boca Chica and neighbouring countries. supplies and launching a campaign dedicated to primary schools in In the poorest areas of Santo Domingo and Boca Chica, the pro- Boca Chica. motional campaign “Plan Deuda Cero” (Zero Debt Plan) contin- In the environmental field, the Company supported theproject for ued, aimed at users who are in arrears, to cancel their debt with the reforestation of the basin of the Brujuelas river – CORAABO personalized payment plans.

216 ACEA GROUP / SUSTAINABILITY REPORT 2019

INDEX OF GRI CONTENTS: REPORTING PRINCIPLES, UNIVERSAL STANDARDS AND SPECIFIC MATERIAL STANDARDS The Sustainability Report was prepared in accordance with GRI indicators, with the indication of sections and pages of the Standards (ed. 2016): Comprehensive option139. The GRI Content document where they can be found – or responses to the in- Index includes Universal Standards (100 series) and Material Spe- dicators – and reporting of any omissions or “non-applicabili- cific Standards (200, 300, 400 series). ty” of certain indicators included in material topics; In particular, the index contains: • the scope of each topic (among the specific material Stand- • reference to Reporting Principles (GRI 101 – Reporting prin- ards), in other words its significance within the organisation ciples 2016); (Group or companies traceable to specific business sectors) • the definition of 56 general information standards (GRI 102 or outside of it (for example supply chain, community). – General Information 2016) and 26 topics deemed materi- Lastly, the right-hand columns of the Content Index give the main al among the specific Standards (GRI 200-Economic, GRI compliances with the topics provided under Legislative Decree no. 300-Environmental, GRI 400-Social series) and relevant 254/2016.

GRI CONTENT INDEX definition of GRI standards Compliance with GRI STANDARDS notes (responses or reporting of omissions or non-applicability) Legislative Decree no. 254/2016 sections and reference pages UNIVERSAL STANDARDS GRI 101: FOUNDATION 2016 (REPORTING PRINCIPLES) GENERAL DISCLOSURES ORGANIZATIONAL PROFILE 102-1 Name of the organization. Art. 3 paragraph 1, letter a): Acea SpA the corporate management and Corporate identity page 26. organisation model 102-2 Activities, brands, products, and services. Art. 3 paragraph 1, letter a): Corporate identity pages 26, 27, chart no. 2. the corporate management and organisation model 102-3 Location of headquarters. Art. 3 paragraph 1, letter a): Piazzale Ostiense 2, 00154 Rome the corporate management and organisation model 102-4 Location of operations (number of countries where the organization Art. 3 paragraph 1, letter a): operates, and the names of countries where it has significant operations the corporate management and and/or that are relevant to the topics covered in the report). organisation model Corporate identity page 26. 102-5 Ownership and legal form. Art. 3 paragraph 1, letter a): Corporate identity page 33. the corporate management and organisation model GRI 102: General Disclosures 2016 102-6 Markets served (including: geographic locations, sectors served, types of Art. 3 paragraph 1, letter a): customers and beneficiaries). the corporate management and Corporate identity pages 26f., 34; Relations with stakeholders pages 88, 90 table organisation model no. 15, 106f. 102-7 Scale of the organization (including: number of employees; net sales – for pri- Art. 3 paragraph 1, letter a): vate sector organizations – or net revenues – for public sector organizations; total the corporate management and capitalization broken down in terms of debt and equity; quantity of products or ser- organisation model vices provided). Corporate identity pages 27, table no 6, 34 table no. 7; Relations with stakeholders pages 143 table no. 36, 160. 102-8 Information on employees and other workers (total number of employees Art. 3 paragraph 2, letter d): by employment type and gender, employment contract by region etc.; whether social aspects and aspects related to a significant portion of the organization’s activities are performed by workers staff management who are not employees. If applicable, a description of the nature and scale of work performed). Relations with stakeholders pages 141f., 143ff., 145-146 table no. 37 102-9 Description of the organization’s supply chain. Art. 3 paragraph 1, letter a): Corporate identity pages 28-33; Relations with stakeholders pages 137f. the corporate management and organisation model

139 The definition of the general and specific standard elements have been translated from the English version of the Consolidated set of GRI Sustainability reporting standards 2016, see the original edition. 218 ACEA GROUP / SUSTAINABILITY REPORT 2019 102-10 Significant changes to the organization’s size, structure, ownership, Art. 3 paragraph 1, letter a): or supply chain (including: changes in the location of, or changes in op- the corporate management and erations, including facility openings, closings, and expansions; changes in organisation model the share capital structure and other capital formation, maintenance, and alteration operations; changes in the location of suppliers, the structure of the supply chain, or relationships with suppliers etc.). Corporate identity page 33; Relations with stakeholders page 138. 102-11 Precautionary Principle or approach (whether and how the organiza- Art. 3 paragraph 1, letter a): tion applies the Precautionary Principle or approach). the corporate management and Corporate identity pages 71, 77, 78 table no. 12; Relations with stakeholders organisation model pages 152f., 167; Relations with the environment page 195. 102-12 External initiatives (a list of externally-developed economic, environ- Art. 3 paragraph 1, letter a): mental and social charters, principles, or other initiatives to which the or- the corporate management and ganization subscribes, or which it endorses.). organisation model Membership in the United Nations Global Compact pages 21-23; Corporate identity pages 36, 38, 78 table no. 8; Relations with stakeholders pages 136, 151, 165ff.; Relations with the environment pages 172f. 102-13 Membership of associations (the reporting should include member- Art. 3 paragraph 1, letter a): ships maintained at the organizational level in associations or organizations the corporate management and in which it holds a position on the governance body, participates in projects organisation model or committees, provides substantive funding beyond routine membership dues, or views its membership as strategic). Relations with stakeholders pages 165f. STRATEGY 102-14 Statement from senior decision-maker (such as CEO, chair, or equiv- Art. 3 paragraph 7: The responsibility alent senior position) about the relevance of sustainability to the organiza- for ensuring that the report is... tion and its strategy for addressing sustainability. compliant rests with the directors Letter to stakeholders pages 6-7; Corporate identity pages 35-39; Relations with stakeholders pages 132, 165f. 102-15 Description of key impacts, risks, and opportunities. Art. 3 paragraph 1, letter c): GRI 102: General Corporate identity pages. 28-33, 35-39, 70, 73, 74 table no. 10, 76ff.; the main risks, generated or incurred; Disclosures 2016 Relations with stakeholders pages 111, 163f., 167; Relations with the environment paragraph 2, letter c): the impact... pages 186f., 190. on the environment and on health and safety ETHICS AND INTEGRITY 102-16 Description of the organization’s values, principles, standards, and Art. 3 paragraph 1, letter a): norms of behavior. the corporate management and Corporate identity pages 36, 38, 68, 73, 83; Relations with stakeholders pages 135f. organisation model 102-17 Mechanisms for advice and concerns about ethics (description of in- Art. 3 paragraph 1, letter a): ternal and external mechanisms for seeking advice about ethical and lawful the corporate management and behavior, and organizational integrity; reporting concerns about unethical organisation model; paragraph 2, or unlawful behavior, and organizational integrity etc.). letter e): respect for human rights, Corporate identity pages 68 chart no. 10, 73. the measures adopted to prevent violations, as well as the actions taken to prevent discriminatory attitudes and actions GOVERNANCE 102-18 Governance structure of the organization, including committees of Art. 3 paragraph 1, letter a): the highest governance body. Committees responsible for decision-making the corporate management and on economic, environmental, and social topics. organisation model Corporate identity pages 68 and chart no. 10, 69 and table no. 8. 102-19 Process for delegating authority for economic, environmental, and so- Art. 3 paragraph 1, letter a): cial topics from the highest governance body to senior executives and other the corporate management and employees. organisation model The Board of Directors confers management delegations to the Chief Executive Officer, who, in the framework of the corporate macro-structure resolved by the Board itself, confers powers and delegations to the management, in compliance with the missions and responsibilities of the various structures. Normally, the process for any type of delegation (and therefore also for economic, environmental and social aspects) occurs through the analysis of the need/ requirement for a power to be attributed.

INDEX OF GRI CONTENTS 219 102-20 Executive-level responsibility for economic, environmental, and social Art. 3 paragraph 1, letter a): topics (whether the organization has appointed an executive-level position or the corporate management and positions with responsibility for economic, environmental, and social topics; organisation model whether post holders report directly to the highest governance body). In Acea SpA, the Risk & Compliance Function, which reports hierarchically to the Chairman and is functional to the Chief Executive Officer, among other things coordinates and develops issues relating to social and environmental sustainability, supporting Group companies in planning the actions necessary to achieve the objectives, reporting annually on the effects through the Sustainability Report. This function includes the Sustainability Unit, whose manager is the Group CSR manager. 102-21 Processes for consultation between stakeholders and the highest gov- Art. 3 paragraph 1, letter a): ernance body on economic, environmental, and social topics. If consulta- the corporate management and tion is delegated, describe to whom it is delegated and how the resulting organisation model feedback is provided to the highest governance body. During the year, management was invited to participate in meetings of the Governing Bodies, providing specific information and knowledge during the meetings. Worthy of note is the activity carried out by the Sustainability Advisory Board on the supervision of the progress of the Sustainability Plan, the results of which are communicated to Top Management. Corporate identity pages 36, 68, 70; Relations with stakeholders pages 160f. 102-22 Composition of the highest governance body and its committees (ex- Art. 3 paragraph 1, letter a): ecutive or non-executive, independence, gender, competencies relating to the corporate management and economic, environmental, and social topics etc.). organisation model Corporate identity pages 68, 69 table no. 8. 102-23 Chair of the highest governance body (the organization shall report Art. 3 paragraph 1, letter a): whether the Chair is also an executive officer in the organization, his or the corporate management and her function within the organization’s management and the reasons for this organisation model arrangement). Corporate identity pages 68, 69 table no. 8. 102-24 Nomination and selection processes for the highest governance body Art. 3 paragraph 1, letter a): and its committees (criteria used for nominating and selecting highest gov- the corporate management and GRI 102: General ernance body members, including whether and how diversity, independ- organisation model Disclosures 2016 ence, expertise and experience relating to economic, environmental, and social topics are considered, stakeholders, including shareholders, are in- volved). In the composition of its corporate bodies, Acea ensures a balanced representation of gender, provided under law no. 120/2011, transposed into its Articles of Association in the same way as it guarantees the presence of independent Directors, governed under such Articles of Association and the law in force. Diversity of gender in the Governing Body and Committees constitutes a particularly important element in relation to both mitigation of the “single mode of thought” and the different way in which men and women exercise their leadership. Shareholders are involved in selection processes and in compliance with the recommendations of the Corporate Governance Code, they are steered in the choice of candidates to put forward in the lists of orientation drawn up by the Board of Directors of Acea, subject to the opinion of the Appointments Committee and considering the outcomes of self-assessment and the dimension and composition of the Board of Directors. Corporate identity page 68. 102-25 Processes for the highest governance body to ensure conflicts of in- Art. 3 paragraph 1, letter a): terest are avoided and managed. the corporate management and The risk of conflict of interest in Acea is monitored thanks to internal corporate organisation model governance systems and procedures (Management, organisation and control model, Code of Ethics, Related Parties Transactions procedure, independent Directors). These tools are used to intervene in the various frameworks within which a conflict of interest may arise: in relations between controlling and minority stakeholders, between Acea and Related Parties and between Acea and Public Administrations. Corporate identity pages 68f. 102-26 Highest governance body’s and senior executives’ roles in the de- Art. 3 paragraph 1, letter a): velopment, approval, and updating of the organization’s purpose, value or the corporate management and mission statements, strategies, policies, and goals related to economic, en- organisation model vironmental, and social topics. Disclosing sustainability: methodological note page 15; Corporate identity pages 36, 38, 68f, 77.

220 ACEA GROUP / SUSTAINABILITY REPORT 2019 102-27 Measures taken to develop and enhance the highest governance Art. 3 paragraph 1, letter a): body’s collective knowledge of economic, environmental, and social topics. the corporate management and Disclosing sustainability: methodological note page 15; Corporate identity pages organisation model 36, 39, 68 and chart no. 10. 102-28 Processes for evaluating the highest governance body’s performance Art. 3 paragraph 1, letter a): with respect to governance of economic, environmental, and social topics. the corporate management and The non-executive directors receive a fixed remuneration, determined by the organisation model Shareholders’ Meeting, commensurate to the commitment required of them. Corporate identity pages 68 and chart no. 10, 69f., 78; Relations with stakeholders page 157. 102-29 Highest governance body’s role in identifying and managing econom- Art. 3 paragraph 1, letter a): ic, environmental, and social topics and their impacts, risks, and opportu- the corporate management and nities – including its role in the implementation of due diligence processes. organisation model Disclosing sustainability: methodological note page 15; Corporate identity pages 38ff., 68f., 71, 77. 102-30 Highest governance body’s role in reviewing the effectiveness of the Art. 3 paragraph 1, letter a): organization’s risk management processes for economic, environmental, the corporate management and and social topics. organisation model environmental and social). Disclosing sustainability: methodological note page 15; Corporate identity pages 40, 68 and chart no.10, 69, 71. 102-31 Frequency of the highest governance body’s review of economic, en- Art. 3 paragraph 1, letter a): vironmental, and social topics and their impacts, risks, and opportunities. the corporate management and Disclosing sustainability: methodological note page 15; Corporate identity pages organisation model 38, 40, 68 chart no. 10. 102-32 The highest committee or position that formally reviews and approves Art. 3 paragraph 1, letter a): the organization’s sustainability report and ensures that all material topics the corporate management and are covered. organisation model Disclosing sustainability: methodological note page 15; Corporate identity page 69. 102-33 Process for communicating critical concerns to the highest gov- Art. 3 paragraph 1, letter a): ernance body. the corporate management and The Board of Directors (BoD) receives constant information on potentially organisation model critical situations, primarily through the work carried out by the Control and Risk GRI 102: General Committee, to which the manager of the Audit Function periodically reports, who Disclosures 2016 interacts with the Board of Directors. The activities carried out and the findings of the Supervisory Boards (pursuant to Legislative Decree no. 231/01) which could lead to the emergence of a risk of responsibility for the company are the subject of flows of information to the BoD. The CEO, also in his role as Director in charge of the Internal Control and Risk Management System, constantly provides information to the Board of Directors concerning operating performance and the effective existence of potentially critical situations. Corporate identity pages 70, 73f. and table no. 10, 78. 102-34 Nature and total number of critical concerns that were communi- Art. 3 paragraph 1, letter a): cated to the highest governance body; mechanism(s) used to address and the corporate management and resolve critical concerns. organisation model Corporate identity pages 73f. and table no. 10, 78. 102-35 Remuneration policies for the highest governance body and senior ex- Art. 3 paragraph 1, letter a): ecutives (fixed pay and variable pay, sign-on bonuses or recruitment incen- the corporate management and tive payments, termination payments etc.). How performance criteria in organisation model the remuneration policies relate to the highest governance body’s and sen- ior executives’ objectives for economic, environmental, and social topics. We point out that in Acea, for the Top Management, Managers having strategic responsibility and managerial roles with greater impact on Group business, the clawback clause is applied – a right to ask the return of variable components in remuneration, in the short and long term if such components were paid on the basis of conduct of gross negligence or wilful misconduct. No agreements are in place which provide fixed indemnities or clauses aimed at safeguarding Group Directors if the working relationship is terminating, for this mater reference is made to the institutions under the Collective Labour Agreement for Directors of Service Companies of Public Utility. The current LTIP – Long Term Incentive Plan is linked solely to economic and financial objectives. The short-term incentive system (MBO), on the other hand, is linked to both objectives of an economic/ financial nature and to environmental objectives having an impact on sustainability. In 2019, much of the Managing Director’s first line was assigned at least one goal with an impact on sustainability to demonstrate how sustainability is increasingly important and relevant in the company culture. Corporate identity pages 68 and chart no. 10, 70; Relations with stakeholders page 157.

INDEX OF GRI CONTENTS 221 102-36 Process for determining remuneration; whether remuneration con- Art. 3 paragraph 1, letter a): sultants are involved in determining remuneration and whether they are the corporate management and independent of management. organisation model During 2019, the Appointments and Remuneration Committee contracted a consulting company to issue an independent opinion on remuneration. Corporate identity pages 68, 70. 102-37 Stakeholders’ involvement in remuneration. Art. 3 paragraph 1, letter a): Corporate identity page 70. the corporate management and organisation model 102-38 Ratio of the annual total compensation for the organization’s high- Art. 3 paragraph 1, letter a): est-paid individual in each country of significant operations to the median the corporate management and annual total compensation for all employees (excluding the highest-paid organisation model individual) in the same country. The ratio between remuneration for the highest-paid individual and average employee for 2019 is given by retributive multiple 15.42, which is compared to a mean value of 20.27 of peer companies. See also the 2019 Remuneration Report available on the Acea Group website (www.gruppo.acea.it). Corporate identity page 70. 102-39 Ratio of the percentage increase in annual total compensation for the Art. 3 paragraph 1, letter a): organization’s highest-paid individual in each country of significant opera- the corporate management and tions to the median percentage increase in annual total compensation for organisation model all employees (excluding the highest-paid individual) in the same country. The company chose to only provide the datum concerning the ratio between the remuneration of the highest-paid individual and the median remuneration of the employees. STAKEHOLDER ENGAGEMENT 102-40 List of stakeholder groups engaged by the organization. Art. 3 paragraph 1, letter a): Disclosing sustainability: methodological note pages 15-17; Corporate identity the corporate management and pages 79-83; Relations with stakeholders pages 91-97, 99, 107f., 110, 112f., organisation model 120-122, 124, 128-134, 136, 140ff., 149ff., 152ff., 156f., 161, 162, 164ff.; Relations with the environment page 172. 102-41 Percentage of total employees covered by collective bargaining Art. 3 paragraph 2, letter d): GRI 102: General agreements. social aspects and aspects relating to Disclosures 2016 Relations with stakeholders page 150. staff management 102-42 Basis for identifying and selecting stakeholders with whom to engage. Art. 3 paragraph 1, letter a): Disclosing sustainability: methodological note pages 15-17; Corporate identity the corporate management and pages 79-83; Relations with stakeholders pages 91-97, 112f., 120-122, 124, organisation model 128-134, 136, 140ff., 149ff., 152ff., 156f., 159, 161, 162, 165f. 102-43 Approach to stakeholder engagement (including frequency of en- Art. 3 paragraph 1, letter a): gagement by type and by stakeholder group, and an indication of whether the corporate management and any of the engagement was undertaken specifically as part of the report organisation model preparation process). Disclosing sustainability: methodological note pages 15-17; Corporate identity pages 79-83; Relations with stakeholders pages 91-97, 99, 107f., 112f., 120- 122, 124, 128-134, 136, 140ff., 149ff., 152ff., 154, 156f., 158ff., 161, 162, 164ff.; Relations with the environment page 172. 102-44 Key topics and concerns that have been raised through stakeholder Art. 3 paragraph 1, letter a): engagement (including how the organization has responded to those key the corporate management and topics and concerns, including through its reporting, and the stakeholder organisation model groups etc.). Disclosing sustainability: methodological note pages 15-17; Corporate identity pages 79-83; Relations with stakeholders pages 91-97, 95-97 table no. 16, 112f., 120-122, 124, 132-134, 136, 140ff., 149ff., 152, 156f., 161, 162, 163, 165ff., 167. REPORTING PRACTICE 102-45 List of all entities included in the organization’s consolidated financial Art. 4 paragraph 1: the consolidated statements. Specify whether any entity included in the organization’s con- statements include the data of solidated financial statements is not covered by the report. the parent company and its fully The indicator is also shown in the report each time the reference boundary of consolidated subsidiaries the disclosure changes. Such shift in some cases is simply to be correlated to the various business sectors (and related pertaining companies) accounted for, in others it must be related to the centralised management of some data which, by virtue of the activities managed under service, does not include the whole accounting scope. Disclosing sustainability: methodological note, pages 18 and table no. 2, 19 note 16; Relations with stakeholders pages 88, 136 note 82, 137; Relations with the environment pages 177, 181, 184.

222 ACEA GROUP / SUSTAINABILITY REPORT 2019 102-46 Process for defining the report content and the topic Boundaries Art. 3 paragraph 1, letter a): (including an explanation of how the organization has implemented the Re- the corporate management and porting Principles for defining report content). organisation model Disclosing sustainability: methodological note pages 15-17, 18, 20; Corporate Art. 4 paragraph 1: identity pages 28-33, 35-39; GRI Content Index pages 218ff. in the measure necessary to ensure the understanding of the group business, its performance, results and the impact it produced 102-47 List of the material topics identified in the process for defining re- Art. 4 paragraph 1: port content. in the measure necessary to ensure Disclosing sustainability: methodological note, pages 15-17 and table no. 1; GRI the understanding of the group Content Index pages 218ff. business, its performance, results and the impact it produced 102-48 Effect of any restatements of information given in previous reports, Art. 3 paragraph 3: the information... and the reasons for such restatements (mergers or acquisitions, change of is provided with a comparison in base years or periods, nature of business, measurement methods). relation to those provided in previous Any recalculations or aggregations implying changes respect to that published in years 2018 are adequately marked and grounded in the report. Disclosing sustainability: methodological note, page 18; Relations with stakeholders pages 143, 140 table no. 33; Relations with the environment pages 196, 197 table no. 65; Environment accounts pages 247ff. 102-49 Significant changes from previous reporting periods in the list of ma- Art. 3 paragraph 3: the information... terial topics and topic Boundaries. is provided with a comparison in Disclosing sustainability: methodological note pages 17, table no. 1, 18, 19 table relation to those provided in previous no. 3; Relations with stakeholders pages 106f., 123 and chart no. 26; years Environmental accounts pages 243, 247f. 102-50 Reporting period for the information provided (for example, the fiscal Art. 2 paragraph 1: public interest or calendar year). entities draw up a declaration for GRI 102: General Disclosing sustainability: methodological note page 14. each financial year the information... Disclosures 2016 Art. 3 paragraph 3: is provided with a comparison in relation to those provided in previous years 102-51 Date of the most recent previous report. n.a. Disclosing sustainability: methodological note page 14. 102-52 Reporting cycle (for example, annual or biennial). Art. 2 paragraph 1: public interest Disclosing sustainability: methodological note page 14. entities draw up a declaration for each financial year 102-53 Contact point for questions regarding the report or its contents. n.a. Disclosing sustainability: methodological note page 20. 102-54 Claims of reporting in accordance with the GRI Standards (either: i. Art. 3 paragraph 3: reporting “This report has been prepared in accordance with the GRI Standards: Core standard used option”, ii. “This report has been prepared in accordance with the GRI Stand- ards: Comprehensive option”). Disclosing sustainability: methodological note page 14; GRI Content Index pages 218ff. 102-55 GRI content index, which specifies each of the GRI Standards used and Art. 3 paragraph 3: reporting lists all disclosures included in the report (for each disclosure, the content in- standard used dex shall include: the number of the disclosure, the page number(s) or URL(s) where the information can be found, if applicable, and where permitted, the reason(s) for omission when a required disclosure cannot be made, etc). GRI Content Index pages 218ff. 102-56 External assurance (the reporting organization shall report a description Art. 3 paragraph 10: verification... of the organization’s policy and current practice with regard to seeking exter- of the non-financial statement nal assurance for the report; a reference to the external assurance report; the relationship between the organization and the assurance provider; whether and how the highest governance body or senior executives are involved in seeking external assurance for the organization’s sustainability report). Disclosing sustainability: methodological note page 15; Opinion Letter page 274.

INDEX OF GRI CONTENTS 223 MATERIAL TOPIC-SPECIFIC STANDARDS GRI 200: ECONOMIC TOPICS 2016 TOPIC ECONOMIC PERFORMANCE 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 33, 35, 36ff., statements include the data of Topic Boundary: Acea Group the parent company and its fully consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 33, 35, 36ff., the corporate management and organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 33, 35, 36ff., the policies implemented by the company...and the results achieved through them 201-1 Direct economic value generated and distributed (including revenues, Art. 3 paragraph 1, letter d): operating costs, employee wages and benefits, payments to providers of social aspects and aspects relating to capital, payments to government and community investments, economic staff management value retained). Corporate identity pages 34 table no. 7, 79-83, 84; Relations with stakeholders pages 148, 162. GRI 201: 201-2 Financial implications and other risks and opportunities due to cli- Art. 3 paragraph 1, letter c): Economic mate change. the impact...on the environment Performance 2016 Corporate identity pages 28-33, 34 38, 75; Relations with stakeholders page 160; Relations with the environment pages 173, 192f. 201-3 Defined benefit plan obligations and other retirement plans. Art. 3 paragraph 1, letter d): Relations with stakeholders pages 148, 149, table no. 40. social aspects and aspects relating to staff management 201-4 Financial assistance received from government. n.a. Corporate identity page 84 note 24. TOPIC INDIRECT ECONOMIC IMPACTS 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 36ff., 79-83; Relations with stakeholders pages 97-118, statements include the data of 132-134, 136. the parent company and its fully Topic Boundary: main Group companies; local community; suppliers. consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 36ff., 79-83; Relations with stakeholders pages 97-118, the corporate management and 132-134, 136. organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff., 79-83; Relations with stakeholders pages 97-118, 136. the policies implemented by the company...and the results achieved through them 203-1 Infrastructure investments and services supported (the organization Art. 3 paragraph 2, letter c): the shall report: the extent of development of significant infrastructure invest- impact...on the environment as well ments; current or expected impacts on communities, including positive and as on health and safety negative impacts where relevant; whether these investments and services are commercial, in-kind, or pro bono engagements, etc.). Corporate identity pages 79-83; Relations with stakeholders pages 97-118, 98- GRI 203: 99 table no. 17, 107 table no. 24, 132-134, 166 and chart no. 44; Relations with Indirect Economic the environment page 175. Impacts 2016 203-2 Significant indirect economic impacts (examples of significant identi- Art. 3 paragraph 2, letter c): the fied indirect economic impacts of the organization, including positive and impact...on the environment as well negative impacts, etc.). as on health and safety Corporate identity pages 79-83; Relations with stakeholders pages 89, 97-118, 98-99 table no. 17, 130, 132-134, 135f., 137f., 138-139 tables no. 34 and 35; Relations with the environment page 179.

224 ACEA GROUP / SUSTAINABILITY REPORT 2019 TOPIC PROCUREMENT PRACTICES 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 28-33, 36ff.; Relations with stakeholders pages 135f. statements include the data of Topic Boundary: main Group companies; suppliers. the parent company and its fully consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 28-33, 36ff.; Relations with stakeholders pages 135f. the corporate management and organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff.;Relations with stakeholders pages 135f. the policies implemented by the company...and the results achieved through them 204-1 Proportion of spending on local suppliers. Art. 3 paragraph 1, letter b): GRI 204: No specific preferential strategy is foreseen for local suppliers, even though, non-financial key performance Procurement particularly for provisioning works, the prevalence of local suppliers comes indicators Practices 2016 about naturally. Relations with stakeholders pages 138, 139 table no. 35. TOPIC ANTI-CORRUPTION 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 36ff., 73. statements include the data of Topic Boundary: Acea Group the parent company and its fully consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 36ff., 73; Relations with stakeholders page 155. the corporate management and organisation model; letter b): the policies implemented by the company 103-3 The management approach and its components. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff., 73f.; Relations with stakeholders page 155. the policies implemented by the company...and the results achieved through them 205-1 Total number and percentage of operations assessed for risks related Art. 3 paragraph 1, letter c): to corruption. Significant risks related to corruption identified through the the main risks, generated or incurred risk assessment. paragraph 2, letter f): fight against Corporate identity page 73. active and passive corruption

GRI 205: 205-2 Communication and training about anti-corruption policies and pro- Art. 3 paragraph 1, letter a): cedures (total number and percentage of employees that the organization’s the corporate management and Anti-corruption anti-corruption policies and procedures have been communicated to, etc.). organisation model: paragraph 2, 2016 Relations with stakeholders page 155. letter f): fight against active and passive corruption 205-3 Confirmed incidents of corruption and actions taken (total number Art. 3 paragraph 2, letter f): fight and nature of confirmed incidents of corruption, etc.). against active and passive corruption No episodes of corruption were recorded.

INDEX OF GRI CONTENTS 225 TOPIC ANTI-COMPETITIVE BEHAVIOR 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 36ff., 71f.; Relations with stakeholders pages 135, 162. statements include the data of Topic Boundary: Acea Group the parent company and its fully consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 36ff., 71f.;Relations with stakeholders pages 135, 155, 162. the corporate management and organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff., 71f.;Relations with stakeholders pages 135, 155, 162. the policies implemented by the company...and the results achieved through them

GRI 206: 206-1 Legal actions for anti-competitive behavior, anti-trust, and monopoly Art. 3 paragraph 1, letter b): practices (Number of legal actions pending or completed including any de- non-financial key performance Anti-competitive cisions or judgments). indicators Behavior 2016 Relations with stakeholders pages 162f. GRI 300: ENVIRONMENTAL TOPICS 2016 TOPIC MATERIALS 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 36ff., 76; Relations with the environment pages 173f., statements include the data of GRI 103: 191; Environmental accounts page 243. the parent company and its fully consolidated subsidiaries. ...in the Management Topic Boundary: main Group companies measure necessary to ensure the approach 2016 understanding of the group business, its performance, results and the impact it produced 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): Corporate identity pages 36ff.;Relations with the environment pages 173f., 191; the corporate management and Environmental accounts page 243. organisation model; letter b): the policies implemented by the company 103-3 The management approach and its components. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff.;Relations with the environment pages 173f., 191; the policies implemented by the Environmental accounts page 243. company...and the results achieved through them 301-1 Materials used by weight or volume (materials that are used to produce Art. 3 paragraph 2, letter c): and package the organization’s primary products and services, by non-re- the impact...on the environment newable and renewable materials used). Relations with the environment pages 191 and table no. 56, 194 and table no. 61; Environmental accounts pages 243, 250ff., 254. GRI 301: 301-2 Percentage of recycled input materials used to manufacture the Art. 3 paragraph 2, letter c): Materials 2016 organization’s primary products and services. the impact...on the environment Relations with the environment page 191 and table no. 56. 301-3 Percentage of reclaimed products and their packaging materials for Art. 3 paragraph 2, letter c): each product category. the impact...on the environment Not applicable. TOPIC ENERGY 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 28-33, 35, 36ff., 76; Relations with the environment statements include the data of pages 173f., 177, 191f. the parent company and its fully Topic Boundary: main Group companies; suppliers. consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, GRI 103 its performance, results and the impact it produced Management approach 2016 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): Corporate identity pages 28-33, 35, 36ff.; Relations with stakeholders page 155; the corporate management and Relations with the environment pages 173f., 177, 191f. organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 35, 36ff.; Relations with stakeholders page 155; the policies applied by the company... Relations with the environment pages 173f., 177, 191f. and the results achieved through them

226 ACEA GROUP / SUSTAINABILITY REPORT 2019 302-1 Energy consumption within the organization. Art. 3 paragraph 2, letter a): the use Relations with the environment pages 191, 192 table nos. 57 and 58. of energy resources 302-2 Energy consumption outside of the organization. Art. 3 paragraph 2, letter a): the use Corporate identity page 26; Relations with the environment page 192. of energy resources 302-3 Energy intensity. Art. 3 paragraph 2, letter a): the use GRI 302: Relations with the environment pages 191, 192 table no. 59, 192f. of energy resources Energy 2016 302-4 Reduction of energy consumption. Art. 3 paragraph 2, letter a): the use Relations with the environment pages 192f. of energy resources 302-5 Reductions in energy requirements of products and services. Art. 3 paragraph 2, letter a): the use Not applicable: The Group does not sell products or services for which the indicator of energy resources could be considered applicable. TOPIC WATER 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 28-33, 35, 36ff., 76; Relations with stakeholders pages statements include the data of 109f., 111-113; Relations with the environment pages 173f, 174ff., 185, 186f. the parent company and its fully Topic Boundary: main Group companies. consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 28-33, 35, 36ff.; Relations with stakeholders page the corporate management and 109f., 111-113, 128, 163; Relations with the environment pages 173f., 174ff., 185, organisation model; letter b): 186f., 194. the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 35, 36ff; Relations with stakeholders pages 109f., 111- the policies implemented by the 113; Relations with the environment pages 173f, 174ff., 185, 186f., 194. company...and the results achieved through them 303-1 Total volume of water withdrawn, with a breakdown by source. Art. 3 paragraph 2, letter a): the use Relations with the environment page 194 table no. 61; Environmental accounts of water resources page 247. GRI 303: 303-2 Water sources significantly affected by withdrawal of water. Art. 3 paragraph 2, letter a): the use Water 2016 Relations with the environment page 194. of water resources 303-3 Percentage and total volume of water recycled and reused. Art. 3 paragraph 2, letter a): the use Relations with the environment page 194 and table no. 61. of water resources TOPIC BIODIVERSITY 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 28-33, 36ff., 76; Relations with the environment pages 173f. statements include the data of Topic Boundary: main Group companies. the parent company and its fully consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 28-33, 36ff.; Relations with the environment pages the corporate management and 173f., 188. organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff; Relations with the environment pages 173f. the policies implemented by the company...and the results achieved through them 304-1 Operational sites owned, leased, managed in, or adjacent to, protected Art. 3 paragraph 2, letter c): areas and areas of high biodiversity value outside protected areas. the impact...on the environment Relations with the environment pages 174-177. 304-2 Significant impacts of activities, products, and services on biodiversity. Art. 3 paragraph 2, letter c): GRI 304: Relations with the environment pages 174-177, 181. the impact...on the environment Biodiversity 2016 304-3 Habitats protected or restored. Art. 3 paragraph 2, letter c): Relations with the environment pages 174-177. the impact...on the environment 304-4 IUCN Red List species and national conservation list species with hab- Art. 3 paragraph 2, letter c): itats in areas affected by operations, by level of extinction risk. the impact...on the environment Relations with the environment pages 174-177.

INDEX OF GRI CONTENTS 227 TOPIC EMISSIONS 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 28-33, 36ff., 76; Relations with stakeholders page 130; statements include the data of Relations with the environment pages 173f., 195f. the parent company and its fully Topic Boundary: main Group companies. consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 28-33 36ff.; Relations with stakeholders pages 129f.; the corporate management and Relations with the environment pages 173f, 195f. organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff.;Relations with stakeholders page 130; Relations the policies implemented by the with the environment pages 173f, 195f. company...and the results achieved through them 305-1 Direct (Scope 1) GHG emissions. Art. 3 paragraph 2, letter b):

Biogenic CO2 was calculated for the Environment and Water segments and in greenhouse gas emissions 2019 was equal to 364,887 tonnes. Relations with the environment pages 195, 197 table no. 65; Environmental accounts pages 253f., 255. 305-2 Energy indirect (Scope 2) GHG emissions. Art. 3 paragraph 2, letter b): Relations with the environment pages 196, 197 table no. 65; Environmental greenhouse gas emissions accounts pages 253f., 305-3 Other indirect (Scope 3) GHG emissions. Art. 3 paragraph 2, letter b): Relations with the environment pages 197 table no. 65. greenhouse gas emissions GRI 305: 305-4 GHG emissions intensity. Art. 3 paragraph 2, letter b): Emissions 2016 Relations with the environment pages 196, 197 table no. 65. greenhouse gas emissions 305-5 Reduction of GHG emissions as a direct result of reduction initiatives. Art. 3 paragraph 2, letter b): Relations with the environment pages 181, 192f., 193 table no. 60, 197 table no. 65. greenhouse gas emissions 305-6 Emissions of ozone-depleting substances (ODS). Art. 3 paragraph 2, letter b): Relations with the environment page 196; Environmental accounts pages 250, 252. greenhouse gas emissions

305-7 Nitrogen oxides (NOx), sulfur oxides (SOx), and other significant air Art. 3 paragraph 2, letter b): emissions. pollutant emissions into the Relations with the environment page 196 table no. 64; Environmental accounts atmosphere pages 253f. TOPIC EFFLUENTS AND WASTE 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 28-33, 35, 36ff., 76; Relations with the environment statements include the data of pages 173f., 181, 188; Environmental accounts page 243. the parent company and its fully Topic Boundary: main Group companies. consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 28-33, 35, 36ff.; Relations with the environment pages the corporate management and 173f., 181, 188; Environmental accounts page 243. organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 35, 36ff.;Relations with the environment pages 173f., the policies implemented by the 181, 188; Environmental accounts page 243. company...and the results achieved through them

228 ACEA GROUP / SUSTAINABILITY REPORT 2019 306-1 Water discharge by quality and destination. Art. 3 paragraph 2, letter a): The water used by Acea structures for “civil/hot water” undergoes the same the use of water resources standard purification process to which all town waste water is submitted. The environmental impact produced on the receiving body of water from the discharge of purified water from all the plants is not significant. Relations with the environment page 188; Environmental accounts page 249. 306-2 Waste by type and disposal method. Art. 3 paragraph 2, letter c): The total hazardous waste products is equal to 74,591 t; the total non-hazardous the impact...on the environment waste products is equal to 207,893 t (of which 137,729 is sludge, sand and gratings). The percentage of hazardous and non-hazardous waste sent for recovery is 36%. Differentiated collection obtained about 916 tonnes of paper in 2019 (+9% compared to 2018) and 622 tonnes of plastic (+28% compared to 2018). There GRI 306: is no detailed information regarding the type of disposal inasmuch as code R13 of Effluents and Waste the normative in force on waste (most used by disposal operators) does not permit 2016 the identification thereof. Environmental accounts pages 253f., 255. 306-3 Total number and total volume of recorded significant spills. Art. 3 paragraph 2, letter c): In 2019, there were no significant released into the environment of polluting the impact...on the environment substances such as mineral oil, fuels or chemical products. 306-4 Transport of hazardous waste. Art. 3 paragraph 2, letter c): Relations with the environment page 183. the impact...on the environment 306-5 Water bodies affected by water discharges and/or runoff, including in- Art. 3 paragraph 2, letter c): formation on the size of the water body and related habitat; whether the the impact...on the environment water body and related habitat is designated as a nationally or internation- ally protected area; the biodiversity value etc. No drain to report that significantly affects the habitats and biodiversity.

TOPIC ENVIRONMENTAL COMPLIANCE 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 36ff; Relations with the environment pages 173f. statements include the data of Topic Boundary: main Group companies. the parent company and its fully consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 36ff.; Relations with stakeholders page 155; Relations the corporate management and with the environment pages 173f. organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff.;Relations with stakeholders page 155; Relations the policies implemented by the with the environment pages 173f. company...and the results achieved through them

GRI 307: 307-1 Non-compliance with environmental laws and regulations. Total mone- Art. 3 paragraph 1, letter b): tary value of significant fines; total number of non-monetary sanctions, etc. the policies implemented by the Environmental Relations with stakeholders pages 162f.; Relations with the environment page 173. company...and the results achieved Compliance 2016 through them TOPIC SUPPLIER ENVIRONMENTAL ASSESSMENT 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 28-33, 36ff.; Relations with stakeholders pages 135f.; statements include the data of Relations with the environment pages 192, 196. the parent company and its fully Topic Boundary: main Group companies; suppliers. consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 28-33, 36ff.; Relations with stakeholders pages 135f., the corporate management and 140f.; Relations with the environment pages 192, 196. organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff.; Relations with stakeholders pages 135s., 141; the policies implemented by the Relations with the environment pages 192, 196. company...and the results achieved through them

INDEX OF GRI CONTENTS 229 308-1 Percentage of new suppliers that were screened using environmental Art. 3 paragraph 1, letter c): the main criteria. risks generated or suffered...deriving Relations with stakeholders pages 136, 140f.; Relations with the environment from the business, its products, pages 192. services or commercial relations, including, where relevant, the supply GRI 308: and subcontracting chains Supplier 308-2 Actual and potential negative environmental impacts in the supply Art. 3 paragraph 1, letter c): Environmental chain and actions taken. the main risks generated or suffered Assessment 2016 Relations with stakeholders pages 140f.; Relations with the environment pages [...] deriving from the business, its 192, 196. products, services or commercial relations, including, where relevant, the supply and subcontracting chains; paragraph 2, letter c): impact...on the environment GRI 400: SOCIAL TOPICS 2016 TOPIC EMPLOYMENT 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 28-33, 36ff.; Relations with stakeholders pages 135f., statements include the data of 143, 154-156. the parent company and its fully Topic Boundary: main Group companies. consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 28-33, 36ff.; Relations with stakeholders pages 135f., the corporate management and 140f., 143, 147f., 153, 154-156, 157, 160. organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff.; Relations with stakeholders pages 135f., 143, the policies implemented by the 147f., 153, 157, 160. company...and the results achieved through them 401-1 New employee hires and employee turnover. Total number and rate, by Art. 3 paragraph 2, letter d): aspects age group, gender and region. relating to staff management Relations with stakeholders pages 143ff., 146-147 table no. 38 401-2 Benefits provided to full-time employees that are not provided to tem- Art. 3 paragraph 2, letter d): aspects porary or part-time employees. relating to staff management Relations with stakeholders page 158. 401-3 Parental leave. Total number of employees that were entitled to Art. 3 paragraph 2, letter d): aspects parental leave, that took parental leave, that returned to work after parental relating to staff management; leave ended, by gender, etc. letter e): actions taken to prevent Acea operates in compliance with the Consolidated Act on the protection and attitudes and conduct that are in any support of maternity and paternity (Italian Legislative Decree no. 151/2001 as case discriminatory subsequently amended and supplemented), which regulates leave, rest, permits GRI 401: and economic support to workers connected with the maternity and paternity of Employment 2016 natural, adopted and fostered children. The legislation bans any discrimination for reasons based on gender, with specific regards to any less favourable treatment due to being pregnant, a mother or a father; it establishes compulsory maternity for a period of five months and guarantees that the job will be kept during that period, laying down a ban on dismissal; it also establishes that the resource will be returned to the duties carried out prior to the leave or equivalent duties, envisaging sanctions for any employers breaching this law. Therefore, 100% of employees using this type of leave, maintain their job and return to work. 336 employees in 2019 made use of parental leave, of whom 123 were men and 213 were women. At the end of the leave period, everyone returned to work and are still active.

230 ACEA GROUP / SUSTAINABILITY REPORT 2019 TOPIC LABOR/MANAGEMENT RELATIONS 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 36ff.;Relations with stakeholders pages 149ff. statements include the data of Topic Boundary: main Group companies. the parent company and its fully consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 36ff.;Relations with stakeholders pages 149ff. the corporate management and organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff.;Relations with stakeholders pages 149ff. the policies implemented by the company...and the results achieved through them

GRI 402: 402-1 Minimum notice periods regarding operational changes (report wheth- Art. 3 paragraph 2, letter d): er the notice period and provisions for consultation and negotiation are method by which dialogue is carried Labor/Management specified in collective agreements). out with the corporate parties Relations 2016 Relations with stakeholders page 150. TOPIC OCCUPATIONAL HEALTH AND SAFETY 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 28-33, 36ff.; Relations with stakeholders pages 151, 153. statements include the data of Topic Boundary: main Group companies. the parent company and its fully consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 28-33, 36ff.; Relations with stakeholders pages 141f., the corporate management and 151, 153, 155. organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff.;Relations with stakeholders pages 141f., 151, 153, 155. the policies implemented by the company...and the results achieved through them 403-1 Workers representation in formal joint management–worker health Art. 3 paragraph 2, letter c): and safety committees. the impact...on health and safety; In Acea, the provisions are respected of Italian Legislative Decree no. 81/2008 letter d): aspects related to on health and safety at work. 100% of workers are represented in formal health personnel management and safety commissions (made up of representatives of management and workers) through appointed figures. Relations with stakeholders pages 150f. 403-2 Types of injury and rates of injury, occupational diseases, lost days, and Art. 3 paragraph 2, letter c): absenteeism, and number of work-related fatalities, by gender and region. the impact...on health and safety; In 2019, the absenteeism rate is 3.58% (3.51% male absenteeism rate and letter d): aspects related to GRI 403: 3.78% female absenteeism rate). personnel management Occupational Health Relations with stakeholders pages 142, 151-152 and chart no. 42, 152-153 table and Safety 2016 no. 41. 403-3 Workers with high incidence or high risk of diseases related to their Art. 3 paragraph 2, letter c): occupation. the impact...on health and safety; Relations with stakeholders page 153. letter d): aspects related to personnel management 403-4 Health and safety topics covered in formal agreements with Art. 3 paragraph 2, letter c): trade unions. the impact...on health and safety; Relations with stakeholders page 151. letter d): aspects related to personnel management...the ways in which the dialogue with the social partners is carried out

INDEX OF GRI CONTENTS 231 TOPIC TRAINING AND EDUCATION 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 28-33, 36ff.; Relations with stakeholders pages 153f., statements include the data of 154-156, 158. the parent company and its fully Topic Boundary: main Group companies. consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 28-33, 36ff.; Relations with stakeholders pages 153f., the corporate management and 154-156, 158. organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff.;Relations with stakeholders pages 153f., 158. the policies implemented by the company...and the results achieved through them 404-1 Average hours of training per year per employee; by gender and em- Art. 3 paragraph 2, letter d): aspects ployee category. relating to staff management Relations with stakeholders pages 155-156 and table no. 42 404-2 Programs for upgrading employee skills and transition assistance pro- Art. 3 paragraph 2, letter d): aspects GRI 404: grams. relating to staff management Training and Relations with stakeholders pages 152ff., 154-156, 157. Education 2016 404-3 Percentage of employees receiving regular performance and career Art. 3 paragraph 2, letter d): aspects development reviews. relating to staff management In 2019, under the scope of the current staff management system, all staff of the Group Companies in the reporting period were assessed (100%). Relations with stakeholders page 157. TOPIC DIVERSITY AND EQUAL OPPORTUNITY 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 28-33, 36ff.; Relations with stakeholders pages 148, 159. statements include the data of Topic Boundary: main Group companies. the parent company and its fully consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 28-33, 36ff.; Relations with stakeholders pages 148, 159. the corporate management and organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff.;Relations with stakeholders pages 148, 159. the policies implemented by the company...and the results achieved through them 405-1 Diversity of governance bodies and employees. Percentage of individ- Art. 3 paragraph 2, letter d): social uals within the organization’s governance bodies, by gender, age group and aspects and aspects relating to staff other indicators of diversity. Percentage of employees per employee cate- management gory, by gender, age group and other indicators of diversity. GRI 405: Regarding the representation of the age groups of the members of the governing Diversity and Equal bodies, considering as such the Board of Directors, Board of Statutory Auditors Opportunity 2016 and SB, it should be noted that 1% are up to 30 years old; 47% are in the 30-50 age group; 52% are over 50 years old. Corporate identity page 68; Relations with stakeholders pages 145-146 and table no. 37, 147 table no. 39, 159. 405-2 Ratio of basic salary and remuneration of women to men for each em- Art. 3 paragraph 2, letter d): social ployee category, by significant locations of operation. aspects and aspects relating to staff The collective national employment contract applied in Acea envisages equal management remuneration for men and women of equal classification. Relations with stakeholders page 148.

232 ACEA GROUP / SUSTAINABILITY REPORT 2019 TOPIC NON DISCRIMINATION 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 36ff., 73; Relations with stakeholders page 159. statements include the data of Topic Boundary: main Group companies. the parent company and its fully consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 36ff., 73; Relations with stakeholders page 159. the corporate management and organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff., 73; Relations with stakeholders page 159. the policies implemented by the company...and the results achieved through them 406-1 Incidents of discrimination and corrective actions taken. Art. 3 paragraph 2, letter d): GRI 406: Corporate identity page 73; Relations with stakeholders page 159. social aspects relating to staff Non discrimination management; letter e): actions taken 2016 to prevent attitudes and conduct that are in any case discriminatory TOPIC LOCAL COMMUNITIES 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 36ff., 79-83; Relations with stakeholders pages 91-97, statements include the data of 97-118, 128-132, 162, 163f. the parent company and its fully Topic Boundary: main Group companies and various stakeholders. consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 36ff., 79-83; Relations with stakeholders pages 91-97, the corporate management and 97-118, 128-132, 162, 163f. organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff., 79-83; Relations with stakeholders pages 91-97, the policies implemented by the 97-118, 128-132, 162, 163f. company...and the results achieved through them 413-1 Operations with local community engagement, impact assessments, Art. 3 paragraph 2, letter c): and development programs. the impact...on the environment and 100% of the main Group Companies implement initiatives to involve stakeholders. on health and safety Disclosing sustainability: methodological note pages 15-17; Corporate identity pages GRI 413: 76ff. and table no. 12, 79-83;Relations with stakeholders pages 91-97, 99, 109f., Local Communities 113, 124, 128-134, 135f., 140f.; Relations with the environment page 172. 2016 413-2 Operations with significant actual and potential negative impacts on Art. 3 paragraph 2, letter c): local communities. the impact...on the environment and Corporate identity pages 79-83; Relations with stakeholders pages 163f.; on health and safety Relations with the environment page 173. TOPIC SUPPLIER SOCIAL ASSESSMENT 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 28-33, 36ff.; Relations with stakeholders pages 135f. statements include the data of the Topic Boundary: main Group companies; suppliers. parent company and its fully consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the impact it produced GRI 103: 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): Management Corporate identity pages 28-33, 36ff.; Relations with stakeholders pages 135f., 140ff. the corporate management and approach 2016 organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff.;Relations with stakeholders pages 153f., 141ff. the policies implemented by the company...and the results achieved through them

INDEX OF GRI CONTENTS 233 414-1 Percentage of new suppliers that were screened using social criteria. Art. 3 paragraph 1, letter c): Relations with stakeholders pages 136, 140f. the main risks generated or suffered GRI 414: [...] deriving from the business, its products, services or commercial Supplier Social relations, including, where relevant, Assessment 2016 the supply and subcontracting chains; paragraph 2, letter c): impact...on health and safety 414-2 Negative social impacts in the supply chain and actions taken. Art. 3 paragraph 2, letter c): Relations with stakeholders pages 136, 140ff. the impact...on health and safety TOPIC PUBLIC POLICY 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 36ff.; Relations with stakeholders pages 162ff. statements include the data of Topic Boundary: Acea Group. the parent company and its fully consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 36ff.;Relations with stakeholders pages 162ff. the corporate management and organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff.;Relations with stakeholders pages 162ff. the policies applied by the company... and the results achieved through them 415-1 Political contributions. Total monetary value of financial and in-kind Art. 3 paragraph 2, letter f): GRI 415: political contributions made directly and indirectly by the organization by fight against active and passive Public Policy 2016 country and recipient/beneficiary. corruption Relations with stakeholders page 162. TOPIC CUSTOMER HEALTH AND SAFETY 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 36ff.; Relations with stakeholders pages 113, 163f.; statements include the data of Relations with the environment pages 181, 185-187. the parent company and its fully Topic Boundary: main Group companies; customers; community. consolidated subsidiaries. ...in the measure necessary to ensure the understanding of the group business, its performance, results and the GRI 103: impact it produced Management 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): approach 2016 Corporate identity pages 36ff.;Relations with stakeholders pages 111-113, 163f.; the corporate management and Relations with the environment pages 181, 185-187. organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff.; Relations with stakeholders pages 113, 163f.; the policies implemented by the Relations with the environment pages 181, 185-187. company...and the results achieved through them 416-1 Assessment of the health and safety impacts of product and service Art. 3 paragraph 2, letter c): categories. the impact...on health and safety GRI 416: Corporate identity pages 76ff. and table no. 12; Relations with stakeholders pages Customer Health 108-109 table no. 25, 111-113; Relations with the environment pages 181, 185-187. and Safety 2016 416-2 Incidents of non-compliance concerning the health and safety impacts Art. 3 paragraph 2, letter c): of products and services. the impact...on health and safety Relations with the environment page 173.

234 ACEA GROUP / SUSTAINABILITY REPORT 2019 TOPIC MARKETING AND LABELING 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 36ff.;Relations with stakeholders pages 91-97, 97-118, statements include the data of GRI 103: 120, 122ff., 142, 162. the parent company and its fully Topic Boundary: main Group companies; customers. consolidated subsidiaries. ...in the Management measure necessary to ensure the approach 2016 understanding of the group business, its performance, results and the impact it produced 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): Corporate identity pages 36ff.; Relations with stakeholders pages 91-97, 97-118, the corporate management and 104-105 table no. 21, 105 table no. 22, 120, 122ff., 142, 162. organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff.;Relations with stakeholders pages 91-97, 97-118, the policies implemented by the 120, 122ff., 142, 162. company...and the results achieved through them 417-1 Requirements for product and service information and labeling. Art. 3 paragraph 1, letter b): The international indicator GRI, by virtue of the reference made to “services” non-financial key performance as well as to products, is reported, adjusting it to the national context and the indicators operations of a multiutility, both in respect of the main parameters relating to the quality of water distributed and in respect of the commercial, contractual and technical quality performance of the services managed in the water and energy sectors, subject to regulation by the national sector authority (ARERA). Relations with stakeholders pages 97-118, 101 table 20, 104-105 table no. 21, 105 table no. 22, 106 table no. 23, 111 table no. 26, 114-115 table no. 27, 115- GRI 417: 116 table no. 28, 116 table no. 29, 118 table no. 30, 119, 122-127; Relations with Marketing and the environment pages 185-187. Labeling 2016 417-2 Total number of incidents of non-compliance with regulations and/or Art. 3 paragraph 1, letter b): voluntary codes concerning product and service information and labeling. non-financial key performance Relations with stakeholders pages 97-118, 101 table 20, 104-105 table no. 21, indicators 105 table no. 22, 106 table no. 23, 114-115 table no. 27, 115-116 table no. 28, 116 table no. 29, 118 table no. 30, 120f., 123f., 162f. 417-3 Total number of incidents of non-compliance with regulations and/or Art. 3 paragraph 1, letter b): voluntary codes concerning marketing communications, including advertis- non-financial key performance ing, promotion, and sponsorship. indicators Relations with stakeholders pages 142, 162f. TOPIC CUSTOMER PRIVACY 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 36ff., 71f.; Relations with stakeholders pages 122. statements include the data of GRI 103: Topic Boundary: main Group companies; customers. the parent company and its fully consolidated subsidiaries. ...in the Management measure necessary to ensure the approach 2016 understanding of the group business, its performance, results and the impact it produced 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): Corporate identity pages 36ff., 71f.; Relations with stakeholders pages 122, 155. the corporate management and organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff., 71f.; Relations with stakeholders pages 122, 155. the policies implemented by the company...and the results achieved through them 418-1 Substantiated complaints (received from outside parties and/or re- Art. 3 paragraph 1, letter b): ceived from regulatory bodies) concerning breaches of customer privacy non-financial key performance and losses of customer. indicators GRI 418: During the year, 118 relevant requests were received for the exercise of the rights Customer Privacy referred to in art. 15-22 of Regulation EU 679/2016 – GDPR (requests for 2016 updating, cancellation, modification, refusal of consent, etc.). An investigation was performed for all of them and there is no evidence of the initiation of proceedings by the Privacy Authority in this respect.

INDEX OF GRI CONTENTS 235 TOPIC SOCIO ECONOMIC COMPLIANCE 103-1 Explanation of the material topic and its Boundary. Art. 4 paragraph 1: the consolidated Corporate identity pages 36ff; Relations with stakeholders pages 113-118, 162. statements include the data of GRI 103: Explanation of the material topic and its Boundary. the parent company and its fully consolidated subsidiaries. ...in the Management measure necessary to ensure the approach 2016 understanding of the group business, its performance, results and the impact it produced 103-2 The management approach and its components. Art. 3 paragraph 1, letter a): Corporate identity pages 36ff.;Relations with stakeholders pages 113-118, 120f., the corporate management and 124, 132, 162. organisation model; letter b): the policies implemented by the company 103-3 Evaluation of the management approach. Art. 3 paragraph 1, letter b): Corporate identity pages 36ff; Relations with stakeholders pages 113-118, 124, 162. the policies applied by the company... and the results achieved through them 419-1 Non-compliance with laws and regulations in the social and economic Art. 3 paragraph 1, letter b): GRI 419: area (total monetary value of significant fines; total number of non-mone- the policies implemented by the Socio Economic tary sanctions etc.). company...and the results achieved Compliance 2016 Relations with stakeholders pages 101 note 38, 121, 162f.; Relations with the through them environment page 173.

236 ACEA GROUP / SUSTAINABILITY REPORT 2019 INDEX OF CHARTS AND TABLES CHARTS no. 1 – Relevant topics for the company and stakeholders: the Acea “materiality matrix” – 2019 p. 16 no. 2 – Activities conducted by Acea’s key companies throughout the territory p. 27 no. 3 – Acea’s business model p. 31 no. 4 – Acea SpA organization chart as at 31.12.2019 p. 31 no. 5 – Proprietary structure as at 31.12.2019 p. 33 no. 6 – Geographical representation of the institutional investors in Acea p. 33 no. 7 – Contribution of the business areas to overall EBITDA (2018-2019) p. 34 no. 8 – The 2019-2022 Sustainability Plan in numbers p. 37 no. 9 – Key elements of the strategy p. 39 no. 10 – Activities of the corporate governance committees p. 68 no. 11 – The architecture of the SCIGR p. 71 no. 12 – The key players of the SCIGR p. 71 no. 13 – The ERM unit and the corporate focal points p. 73 no. 14 – The certified integrated management system p. 77 no. 15 – Stakeholders and their involvement p. 79 no. 16 – Stakeholder map p. 80 no. 17 – Tools for sustainability p. 83 no. 18 – Overall CSI and on electricity service aspects – sale and distribution of energy (2019) (index 0-100) p. 92 no. 19 – Overall CSI and on aspects of the public lighting service in Rome and Formello (2019) (index 0-100) p. 93 no. 20 – Overall CSI and on aspects of the water service – sale and distribution of water in Rome and Fiumicino (2019) (index 0-100) p. 93 no. 21 – Overall CSI and on aspects of the water service – sale and distribution of water in Frosinone and vicinity (2019) (index 0-100) p. 94 no. 22 – Overall CSI and on aspects of the water service – sale and distribution of water in Sarnese Vesuviano (2019) (index 0-100) p. 94 no. 23 – Overall assessment and on aspects of the water service –sale and distribution of water in Benevento and vicinity (2019) (rating 1-10) p. 95 no. 24 – Types of public lighting faults out of total reports received (2019) p. 101 no. 25 – Electricity price trend for a standard domestic customer (2018-2019) p. 119 no. 26 – Total telephone calls to Acea toll-free numbers (2018-2019) p. 123 no. 27 – Percentage breakdown of inbound calls to Acea toll-free numbers (2019) p. 123 no. 28 – Acea 2019 corporate website: access methods and age groups p. 131 no. 29 – Value of procurement of goods, services and works and percentage on total (2019) p. 137 no. 30 – Orders (goods, services, works) by business area (2018-2019) p. 137 no. 31 – Geographical distribution of the amounts used for the purchase of goods and services in Italy and abroad (2019) p. 138 no. 32 – Geographical distribution of the amounts of works awarded in Italy and abroad (2019) p. 138 no. 33 – Average score of Acea suppliers by scope of self-assessment (2019) p. 140 no. 34 – Staff composition: category, gender, level of education and age (2019) p. 144 no. 35 – Contract types and the length of the employment relationship (2019) p. 144 no. 36 – Types of entries and age of the staff (2019) p. 144 no. 37 – Types of exit and age of the staff (2019) p. 144 no. 38 – The distribution of the staff from a perspective of gender (2019) p. 145 no. 39 – Presence of women in the corporate governance bodies (2017-2019) p. 145 no. 40 – Hours worked by the staff and absences (2019) p. 148 no. 41 – Average salaries and relationship between base salary and remuneration (2019) p. 148 no. 42 – Accidents and indices (2019) p. 151 no. 43 – Members that have used CRC services (2019) p. 160 no. 44 – Distribution of investments by macroareas (2018-2019) p. 166 no. 45 – Installed electrical power of the group subdivided by energy source (MW) (2019) p. 178 no. 46 – Electricity produced subdivided by primary energy source (TJ) (2019) p 179 no. 47 – The water distribution network of the group in Italy (2019) p. 185 no. 48 – Tests of drinking water, total and by company (2019) p. 185 no. 49 – Actual water losses p. 187 no. 50 – Sewer networks of the group in Italy (2019) p. 188 no. 51 – Analytical checks on wastewater, total and per company (2019) p. 189 no. 52 – Car sharing data (2019) p. 193

INDEX OF CHARTS AND TABLES 237 TABLES

no. 1 – Consistency with GRI “material specific standards” and Acea “material topics” of high significance p. 17 no. 2 – Companies included in the parent company’s full consolidation area (2019) p. 18 no. 3 – Scope of the Acea Group consolidated non-financial statement 2019 §(pursuant to Legislative Decree no.254/2016 and GRI standards) p. 19 no. 4 – The ten principles of the United Nations Global Compact p. 21 no. 5 – The elements of advanced CoP and GRI standards p. 22 no. 6 – The Acea Group in figures 2019 p. 27 no. 7 – Main economic and equity data of the Acea Group (2018-2019) p. 34 no. 8 – Structure of the Board of Directors and Committees of Acea SpA (as at 31.12.2019) p. 69 no. 9 – Models and controls p. 72 no. 10 – Material topics, risks and management methods p. 74 no. 11 – Risks and opportunities related to climate change: CDP evidence p. 75 no. 12 – The certified management systems in the Group (as at 31.12.2019) p. 78 no. 13 – Economic value directly generated and distributed (2018-2019) p. 84 no. 14 – Breakdown of value generated by stakeholder (2018-2019) p. 84 no. 15 – Customers of the Acea Group (2017-2019) p. 90 no. 16 – Customer satisfaction survey results (2018-2019) p. 95 no. 17 – The main interventions for the management and development of networks and electrical substations (2019) p. 98 no. 18 – Public lighting in Rome in figures (2019) p. 100 no. 19 – Main interventions for efficiency, safety, repair and maintenance (2019) p. 101 no. 20 – Restoration of public lighting faults: penalties, standards and Acea performance (2018-2019 p. 101 no. 21 – Main specific and general levels of commercial quality – energy distribution (2018-2019) p. 104 no. 22 – Main specific and general levels of commercial quality – energy sales (2018-2019) p. 105 no. 23 – Service continuity data – energy distribution (2017-2019) p. 106 no. 24 – Water mains areas 2019 (georeferenced data) p. 107 no. 25 – Main interventions on the drinking water and sewerage networks and controls on drinking water and wastewater (2019) p. 108 no. 26 – Number, type and duration of disruptions in the supply of water (2017-2019) p. 111 no. 27 – Main specific and general levels of contractual quality in the water sector (2018-2019) – Acea Ato 2 p. 114 no. 28 – Main specific and general levels of contractual quality in the water sector (2018-2019) – Acea Ato 5 p. 115 no. 29 – Main specific and general levels of contractual quality in the water sector (2018-2019) – Gori p. 117 no. 30 – Main specific and general levels of contractual quality in the water sector (2018-2019) – Gesesa p. 118 no. 31 – Average water prices applied (2019) p. 119 no. 32 – Energy: performance of toll-free numbers and branches (2018-2019) p. 125 no. 33 – Water: performance of toll-free numbers and branches (2018-2019) p. 126 no. 34 – Procurement data (2017-2019) p. 138 no. 35 – Procurement nationwide (2017-2019) p. 139 no. 36 – Changes in employees by macro segment (2017-2019) p. 143 no. 37 – General data on the staff (2017-2019) p. 145 no. 38 – Movements of personnel (2017-2019) p. 146 no. 39 – Age groups, employment contract length (2017-2019) p. 147 no. 40 – Hours worked, absences, compensation and members of the supplemental pension fund (2017-2019) p. 149 no. 41 – Health and safety (2017-2019) p. 152 no. 42 – Training (2018-2019) p. 155 no. 43 – Performance of stock exchange indexes and Acea shares (2019) p. 160 no. 44 – Ratings 2019 p. 161 no. 45 – The principal sources under protection p. 175 no. 46 – Installed power of the electric power stations of Acea Produzione p. 178 no. 47 – Electricity produced (by primary energy source) (2017-2019) p. 179 no. 48 – The production of energy by Ecogena plants and energy efficiency certificates (2017-2019) p. 180 no. 49 – Number of overhead and underground distribution lines and plants (2017-2019) p. 180 no. 50 – The San Vittore del Lazio waste-to-energy plant: operating data (2017-2019) p. 184 no. 51 – Terni waste-to-energy plant: operating data (2017-2019) p. 184 no. 52 – Analyses in Rome (2017-2019) and main quality parameters of the drinking water distributed in Lazio and Campania (2019) p. 186 no. 53 – Percentage coverage of the sewer and purification services over the total utilities of the water Companies operating in Lazio and Campania (2017-2019) p. 189 no. 54 – Volumes of effluent treated by water Companies operating in Lazio and Campania (2017-2019) p. 189 no. 55 – Output parameters of the main purifiers managed by Acea Ato 2, Acea Ato 5, Gori and Gesesa (2019) p. 190 no. 56 – Material consumption of the main Companies in the Group (2017-2019) p. 191 no. 57 – Direct energy consumption of the main Companies in the Group (2017-2019) p. 192 no. 58 – Indirect energy consumption of the main Companies in the Group (2017-2019) p. 192 no. 59 – Energy intensity indices (2017-2019) p. 192 no. 60 – Energy efficiency in Areti (2017-2019) p. 193 no. 61 – Water consumption of the main companies in the Group (2017-2019) p. 194 no. 62 – Air emissions from the San Vittore del Lazio and Terni waste-to-energy plants (2017-2019) p. 195

no. 63 – CO2 emission allowances as per the national allocation plan (NAP) and actual emissions by plant (2017-2019) p. 196 no. 64 – Total emissions of atmospheric pollutants from Acea group plants (2017-2019) p. 196

no. 65 – Environmental indicators: CO2 emissions, greenhouse gas intensity indices and vehicle emissions (2017-2019) p. 197

238 ACEA GROUP / SUSTAINABILITY REPORT 2019 INDEX OF CHARTS AND TABLES 239